Latin America continues to be a highly attractive investment destination for Spanish companies, with Peru, Colombia and Mexico forecast to be key investment markets in 2015.

Spanish investment in the region was high in 2014 with a total of €143 billion invested in Latin America, which represents 43% of total Spanish investment abroad. According to the eighth edition of the Panorama report on Spanish investment in Latin America, the main destinations for Spanish investment were Mexico, Brazil, Colombia, Chile and Peru.

Future investment from Spanish companies in Latin America remains strong. This is despite the recent economic slowdown in the region caused by a fall in oil prices and other commodities, as well as a change in exchange rates. 74% of Spanish firms polled for the Panorama study stated they plan to increase their investment in Latin America, 6% plan to reduce their investment and 20% said their investment levels would remain the same. Among small and medium enterprises, 80% intend to increase their investment in Latin America.*

However, in the same study conducted three years ago, 95% of Spanish companies surveyed planned to increase their turnover in Latin America within three years; that figure has now dropped to 74%. Growing interest from Spanish companies to invest in other destinations such as the US, Asia or Africa has detracted somewhat from future investment in Latin America.

Managing Director of Vistra Spain, Oscar Garcia, says:

'Following a decade of sustained growth, with greater currency and inflation stability, Latin America is a land of opportunity for Spanish companies. The region is attractive due to its demographics, economic growth and consumerism. Currently, the key investment sectors are infrastructure, banking and IT. However, analysts maintain that Spanish businesses should be open to investing in other sectors which report growing sales and fast expansion.'

*Over 60 large and mid-sized Spanish companies listed on Madrid's stock exchange and/or with significant investment in Latin America were surveyed for the eighth edition of the Panorama report on Spanish investment in Latin America 2015.

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