The Best Countries to Invest in LATAM? The 2025 Kearney Ranking is Out

Quick overview

Brazil and Mexico remain the most attractive countries in Latin America for investment in 2025, according to the latest edition of Kearney’s Foreign Direct Investment (FDI) Confidence Index, which ranks the 25 most appealing global destinations for FDI.

However, both countries saw a drop in their rankings this year. Brazil, led by President Luiz Inácio Lula da Silva, fell two spots to 21st place—exactly where Mexico ranked in 2024. Mexico, in turn, dropped to the 25th and final position on the list.

According to Kearney, “developed markets continue to dominate the rankings, accounting for 19 of the top 25 globally, suggesting that investors may be seeking perceived security and stability in an increasingly volatile world.”

FDI Ranking

Argentina, which was included in the 2024 edition, saw its investment appeal decline, ranking 9th among emerging markets—leading the group just below the main global index.

Other Latin American countries included in the emerging markets list were:

• Chile (15th)
• Colombia (20th) – notably, the only country in the region that advanced
• Costa Rica (23rd)
• Peru (24th)
• Uruguay (25th)

These markets ranked below Argentina in overall appeal.

The report highlights that “the efficiency of legal and regulatory processes, along with national economic performance, are tied as the two most important factors investors consider when deciding where to allocate foreign direct investment.”

Additionally, respondents cited economic performance as the primary reason for investing in 12 of the top 25 markets.

However, risks also play a crucial role. Rising commodity prices and growing geopolitical tensions are among the top investor concerns amid increasing global uncertainty.

According to the survey, 38% of investors expect commodity prices to rise in the coming year, while 35% anticipate escalating geopolitical tensions—a seven-point increase compared to last year.

Brazil: The Regional Leader

Despite its slight drop in the global ranking, Brazil performed strongly in this year’s edition. “Brazil’s decline is more of a rounding effect,” the report notes. “Among emerging markets, however, the country made remarkable progress—ranking ahead of India, Mexico, and regional peers such as Chile and Colombia.”

Brazil remains attractive due to its vast natural resources—not just in mining and agriculture, but also in clean energy and the emerging carbon economy. The country has also demonstrated “robust” economic growth in recent years.

“While the government’s fiscal stimulus is often criticized domestically, from an international perspective, investors see Brazil as a country with a large consumer base and an appealing market where investments can leverage that potential—whether through existing facilities or new projects,” the report adds.

Investors also value Brazil’s skilled labor force, ease of doing business, and equal treatment of foreign investors. “All of this positions Brazil among the top five emerging markets globally,” the study concludes.

Notably, Brazil was absent from the FDI ranking for 25 years and only returned in 2024. While it has yet to reclaim its early 2000s position among the top global destinations, its recent trajectory marks a significant comeback.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments