Foreign investment in Latin America up 54% in H1 of 2011

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) said that despite the crisis in Europe and the United States, direct foreign investment in Latin America grew 54 percent in the first half of 2011, about 82 billion U.S. dollars, local press reported on Thursday. "Latin America is actually seen as an interesting alternative for direct foreign investment, due to the lower demand in the developed countries," said Daniel Titelman, director of ECLAC's Development Studies. Brazil, Mexico, Chile and Colombia received a total of 68 billion dollars in the period, according to ECLAC. However, the ECLAC has reduced foreign investment growth forecast for Latin America to 4.4 percent in 2011 and 3.8 percent in 2012, due to the global uncertainty. Titelman warned that "in case of a recession (in Latin America), indeed, there could be a capital flight to developed markets." ECLAC has suggested Latin American governments adopt inclusive labor policies to boost employment as a way to protect their population from the crisis.