Mexico City, Jul 17 (EFE).- Latin American investment in Spain has been steadily growing year after year, with Mexico and Argentina leading the way and technology, real estate and finance currently the most attractive sectors.
More than 500 Mexican companies have set up business operations in Spain and a total of more than 30 billion euros ($33.68 billion) have been invested by those firms.
In that regard, Antonio Basagoiti, president of the Spanish Chamber of Commerce in Mexico (Camescom), said it is important to maintain and strengthen existing channels of communication and economic ties between Mexico and Spain.
“Mexican companies are very welcome. With their arrival in Spain, they have us as a bridge for diversifying toward Europe,” Basagoiti told Efe.
According to information from the Camescom internationalization area, the focus of Mexican investment over the past three years has been on the construction, real-estate, hotel and finance sectors, with the majority of the funds flowing to the Madrid region.
ARGENTINA: SECOND-LARGEST INVESTOR
Argentina ranks behind Mexico as the second-largest Latin American investor in the Iberian nation with a total investment stock of more than 9.4 billion euros, according to figures from Global LATAM 2022, a report produced by ICEX-Invest in Spain, a Madrid-based investment service.
Large Argentine multinationals operate in Spain in the technological services, food and pharmaceutical sectors, although in recent years smaller-sized and emerging companies in the technology, logistics and gastronomy sectors also have begun to invest.
“With the end of the pandemic, a lot of Argentine companies were waiting to make the jump in a search for new markets,” said Gonzalo Szybut, executive director of Asaede, a community for Argentinian entrepreneurs that want to internationalize and expand their companies to Europe.
Barcelona, in particular, has served as a launching pad for Argentine technology companies.
In fact, Argentina’s Consulate General and Promotion Center in that city launched a technology center there last year in which dozens of Argentine companies are participating.
“Barcelona is a platform for reaching the different markets of the European Union,” Ezequiel Coppari, Argentina’s deputy consul in Barcelona, told Efe.
BRAZIL: FAR FROM ITS RECORD HIGH
Latin America’s largest economy, Brazil, also is among the largest investors in Spain from that region.
However, the volume of investment still lags well behind its record high from 10 years ago.
Brazilian foreign direct investment in Spain has ranged from between 6.2 billion euros and 7.1 billion euros over the past five years, according to figures from the Brazilian Export Promotion and Investment Agency (ApexBrasil).
Those figures are still a far cry from the 17.5 billion euros invested in 2013.
The focus of Brazilian investment has been on the construction, infrastructure, metallurgy and footwear sectors. Projects also are in the pipeline for new (greenfield) installations in the European country.
In addition, the South American giant has a presence in the technology and software sectors and has announced mergers and acquisitions in the health-care sector.
Brazil furthermore has maintained a strong presence in Spain due to its exports of raw materials.
In fact, more than 70 percent of its shipments to Spain correspond to crude oils, soy and corn, according to ApexBrasil figures. Trade has grown gradually, having climbed 17.4 percent over the past five years.
COLOMBIA LESS FOCUSED ON SPAIN
Spain is the second-leading investor in Colombia with 2.44 billion euros invested in 2022 and a cumulative total of 25.2 billion euros, trailing only the United States, according to Colombia’s central bank.
However, there is much less Colombian investment in Spain.
Last year, total investment amounted to just 142.5 million euros and was concentrated in the aviation, packaging, food, insurance, services and fashion sectors.
In the first quarter of 2023, the amount of Colombian capital invested in Spain amounted to just 21.9 million euros, or less than the investment in Spain by Panama, Chile, the United States, Switzerland and other countries.
The Colombian companies with the largest investment presence in Spain are in the retail and services sectors and include Avianca, Carvajal, Colombina, Empresas Publicas de Medellin, Grupo Sura and the Totto and Studio F groups. EFE
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