Foreign direct investment in Latin America and the Caribbean grew steadily in 2024, but the trend may slow this year. Much of the region’s FDI comes from transnational firms already operating there. New investments are included in these equity inflows, so a slowdown could signal declining investor interest. The top three sources of regional FDI are the United States (38 percent), the European Union (15 percent) and Latin America and the Caribbean itself (12 percent). China and Hong Kong together account for just 2 percent.