Home News 98 per cent of Guyana’s FDI inflows went to hydrocarbons in 2024...
…as FDI flows to the LAC region climb to US$189B
Almost all of Guyana’s Foreign Direct Investments (FDIs) in 2024 went to the country’s burgeoning oil and gas sector, according to a recent report from the Economic Commission for Latin America and the Caribbean (ECLAC).
In its annual report – Foreign Direct Investment in Latin America and the Caribbean 2025 – that was recently released in Santiago, Chile, ECLAC reported that hydrocarbon production accounted for a staggering 98 per cent of Guyana’s total FDI inflows last year.
According to ECLAC, FDI flows to the Latin America and the Caribbean (LAC) region grew to US$188.962 billion in 2024.
Based on reports, Brazil and Mexico dominated headlines, capturing 38 per cent and 24 per cent of Latin American FDI, respectively, while the Caribbean region delivered 2024’s strongest regional growth performance.
Caribbean FDI inflows surged 32.7 per cent to $15.28 billion – the highest regional growth rate, outpacing Central America’s 16.6 per cent and South America’s mixed results, where several major economies saw declining inflows.
On a sectorial basis, manufacturing inflows increased and services inflows decreased last year. When it comes to natural resources, this industry had the smallest share of inflows – 16 per cent of the regional total. However, Guyana was named among two countries that saw a climb in foreign investments.
“Nearly all countries saw declining investment in this sector, except Argentina, where a 44 per cent increase carried the sector’s share of the total to 39 per cent, and Guyana, where inflows to the sector – up 43 per cent on the back of expanded hydrocarbon production – accounted for 98 per cent of total inflows,” the report detailed.
Guyana began producing oil in 2019 from the prolific Stabroek Block offshore Guyana, which is being operated by United States oil major ExxonMobil along with its coventurers.
With three active Floating Production Storage and Offloading vessels (FPSOs – all operating at near optimal levels – Guyana’s total production capacity stood at some 690,000 barrels per day (bpd) as of May 2025.
ECLAC report
ECLAC – a regional United Nations body – says last year’s $189B growth in FDI inflows to the LAC region reflects a 7.1 per cent increase from 2023. This figure, it noted, represented, on average, 13.7 per cent of the region’s gross fixed capital formation and 2.8 per cent of gross domestic product (GDP) in 2024 – below the levels recorded in the 2010s when it accounted for 16.8 per cent and 3.3 percent, respectively.
It was reported that the 2024 growth was driven by transnational firms that already operated in the region, mainly due to increased reinvestment of earnings, while the contributions of capital remain stagnant, with ECLAC warning that the latter reflects new companies’ limited interest in locating in the region.
It was further noted that project announcements rose due to a big push from hydrocarbon investments, while renewable energy and more technology-intensive sectors lost ground in this area, the UN regional organisation stated.
According to the annual publication, the United States consolidated its position as the biggest investor in Latin America and the Caribbean, accounting for 38 per cent of the value invested in 2024.
The share of the European Union (excluding Luxembourg and the Netherlands) fell to 15 per cent of the regional total in 2024 – the lowest figure since 2012. The investments coming from within Latin America and the Caribbean represented 12 per cent of FDI inflows in the region, ranking as the third place of origin.
Meanwhile, Chinese FDI represented just 2 per cent of total inflows in 2024. However, ECLAC explains that only a small proportion of FDI inflows coming from China are recorded in balance of payments statistics, since a significant number of Chinese investments pass through third countries, and another large amount has been in the form of purchases of assets that already belonged to foreign companies or in modalities that do not comprise FDI (for example, as concessions or construction contracts).
With regard to the behaviour of Latin American transnational corporations (known as trans-Latins), the report shows that FDI outflows from the region increased by 47 per cent in 2024, totalling $53.033 billion dollars. Brazil was named the biggest investor abroad with 46 per cent of the total, despite having experienced a slight decline in FDI outflows – three per cent – while investments coming from Mexico showed the greatest growth.
ECLAC’s Executive Secretary, José Manuel Salazar-Xirinachs, said, “At ECLAC we believe that Latin America and the Caribbean must harness Foreign Direct Investment to achieve more productive, inclusive, and sustainable development. Using FDI as a strategic tool within productive development policies will be key to achieving this. Fittingly, we include in this report a series of guidelines that can help improve the technical, operational, political, and prospective (TOPP) capabilities of countries and their territories in relation to policies aimed at attracting investment and creating a positive impact on productive development.”
