Europe Leads in Latin American Investments

European companies, led by Spanish firms, have surpassed the United States as the main source of direct foreign investment in Latin America and the Caribbean, reaching record levels compared with the early 1990s, a United Nations-World Bank report said. The survey also said expansion of multinational corporations is gaining momentum as the world economy becomes increasingly global. The 223-page report, produced by the U.N. Economic Commission for Latin America and the Caribbean, covers 1998, the last year for which complete figures are available. Michael Mortimore, the main author, said the region’s foreign investment would be “reaching unimaginable levels at the end of 1999, nearing $86 billion compared to $18 billion from 1990 to 1994.” The report said Latin America and the Caribbean have almost closed the gap with Asia as a destination for investment funds. One factor in the late-century growth spurt was the Asian financial crisis that started in mid-1997 and sent investment dollars to the apparently safer Western Hemisphere.