Mexico excels in creating a strong economic environment, while Brazil makes strides in the Financial Services sector.
WASHINGTON – ECNETNews reports that the latest Global Opportunity Index (GOI) reveals positive trends for the Latin America and Caribbean (LAC) region, which has emerged as a prominent hub for foreign investments. In 2023, the region attracted nearly half of the foreign direct investment inflows to emerging economies and over a third of global inflows.
The GOI assesses five key dimensions that track a country’s efforts to develop sustainable economies within resilient societies, focusing on the capacity to support a skilled labor force, environmentally friendly business practices, and effective corporate governance.
LAC nations show strong performance compared to other emerging and developing regions in three out of five GOI dimensions:
- Future Environment of Growth—Most LAC countries exceeded the emerging and developing (E&D) average in this category, indicating their potential for sustainable growth. Costa Rica and Uruguay emerged as regional frontrunners, leveraging their abundant natural resources and balanced social structures.
- Workforce Talent—A growing, skilled labor force is a significant driver of economic growth within LAC. However, with declining fertility rates, countries in the region must find innovative solutions to sustain their workforce in the future.
- Financial Size Conditions—The majority of LAC countries outperformed the E&D average in this subcategory, with Brazil, Chile, and Uruguay leading, while Guatemala and Paraguay slightly lag behind.
“The Latin America and the Caribbean region has become an increasingly attractive destination for investment,” an analyst stated. “This report highlights the key strengths and vulnerabilities of LAC nations, offering valuable insights for companies exploring business opportunities in this region.”
As the largest trade partner of the U.S. and the second-largest economy in the region, Mexico remains a pivotal force. The country excels in the Recovery and Resolution and Economic Openness categories of the GOI. Resilient foreign direct investment inflows to Mexico are largely directed towards the manufacturing sector, indicating a growth in production across the economy.
Brazil, the world’s ninth-largest economy, continues to be a major player in both global and regional markets. It leads the LAC region in Financial Services, ranking 29th worldwide in this aspect of the GOI, and stands out for its vibrant innovation landscape. Notably, Brazil attracted 36.5 percent of all capital inflows to the LAC from 2021 to 2023 and was involved in six of the top ten largest cross-border mergers and acquisitions deals in 2023.
Together, Mexico and Brazil, alongside Argentina, Chile, and Colombia, account for two-thirds of the region’s GDP and nearly 15 percent of global production.
The comprehensive GOI rankings are accessible through interactive tools that allow users to explore country performance through various visual representations, including ranking tables and heatmaps.
Understanding the Global Opportunity Index
The GOI is developed through the assessment of investment prospects using approximately 100 variables categorized into five main areas: Business Perception, Financial Services, International Standards & Policy, Economic Fundamentals, and Institutional Frameworks. These categories measure a country’s investment potential from multiple angles, including economic openness, performance, business constraints, and workforce talent. Data is sourced from various reputable organizations.
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