The link between Spain and Latin America has become more interdependent, with reciprocal investment flows contributing to the economy on both sides and positioning Spain as a springboard to other global markets. This phenomenon, driven by an increase in the mobilization of Latin American capital to Europe and the continued interest of Spanish companies in Latin America, suggests that both markets are on a trajectory of shared growth and future opportunities.
Spain has traditionally been a key partner in Latin America, where direct investment has now reached 150 billion euros. This is mostly concentrated in Mexico and Brazil, the countries that account for almost half of this total. Other countries, such as Chile, Argentina, Peru, and Colombia, also stand out.
Despite the significant challenges in the region, such as a great heterogeneity of economic and political contexts, Spanish companies show remarkable confidence in their growth potential in Latin America. According to the latest IE University report (2024), 76% of these companies plan to increase their regional investments this year, highlighting optimism about the evolution of the companies’ turnover in the coming years. This reflects a growing commitment between the Spanish and Latin American economies, where the service sectors concentrate the most investment.
Likewise, the interest of Latin American companies in investing in Spain has grown exponentially, making the country the world’s second-largest investment destination after the United States, with a significant increase of 138% in 2023, reaching 2,835 million euros. Mexico leads this investment trend, while other economies such as Argentina, Uruguay, and Brazil are gaining ground. This investment process not only reinforces Spain as an important recipient of Latin American capital but also establishes the country as a critical platform for the internationalization of these companies toward Europe and other regions.
Latin American investment in Spain totals 66,883 million euros, making it the fourth-largest investor in the country, surpassing even European powers such as Germany and Italy. Latin American companies, primarily large and medium sized, diversify their investments in crucial sectors such as services, distribution, and manufacturing, generating employment and contributing to local economic growth.
Spain’s cultural proximity, language, and strong institutional base enable Latin American companies to find an environment conducive to expansion. Eighty-six percent of the companies surveyed in a study by the Business Council Alliance for Ibero-America (CEAPI) indicated that their main objective when investing in Spain was internationalization.