The Latin American version of the Global Opportunity Index 2025 (GOI) once again ranked Chile as the most attractive country for foreign direct investment. None of the four main economies in the region (Brazil, Mexico, Argentina or Colombia) even appear in the top 3. In fact, Argentina, the third largest economy in the region, appears from the middle of the table to the bottom.
The top positions in this ranking, prepared by the Milken Institute, are occupied by:
1. Chile (fifth largest economy in Latin America) 2.
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Uruguay
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Costa Rica
Among the large regional economies, the best placed is Mexico, which appears in 4th place, while Brazil, the regional giant, appears only in 7th place.
This index measures the relative investment potential of countries by considering key business, regulatory and legal policies that influence foreign capital flows.
One fact to bear in mind is that the GOI 2025 report is based on data from 2023, the most recent available at the time of its preparation. This data may be decisive for the Argentine case due to the departure of a center-left government (Alberto Fernández) and the arrival of a president with a pro-market outlook (Javier Milei).
How do Latin American countries rank in terms of investment opportunities?
This is how the countries rank, from best to worst, in the 2025 investment opportunities ranking, taking into account the Latin American and Caribbean nations. The rankings range from 1 (most attractive investment conditions) to 116 (least attractive investment conditions).
1. Chile: 40 points
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Uruguay: 44 points
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Costa Rica: 47 points
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Mexico: 62 points
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Peru: 64 points
6. Jamaica: 65
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Brazil: 68
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Colombia: 69
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Panama: 71
10. Dominican Republic: 76
11. Trinidad and Tobago: 77
12. Argentina: 80
13. Guatemala: 81
14. Paraguay: 84
15. El Salvador: 86
16. Ecuador: 89
17. Bolivia: 91
18. Nicaragua: 92
19. Honduras: 97
The factors taken into account by the authors of the ranking are:
- Business Perception: measures the ease of doing business, contract enforcement and insolvency resolution.
- Economic fundamentals: assesses a country's macroeconomic outlook, labor talent and factors affecting its ability to maintain resilient and sustainable growth.
- Financial services: analyzes the depth and breadth of the financial system, as well as access to finance.
- Institutional framework: examines the stability and transparency of a country's institutions and their ability to protect investors' rights.
- International standards and policies: measures a country's integration into the international community and its alignment with global regulatory standards.
Particular considerations
The following are some considerations mentioned in the study in relation to particular countries:
*"Argentina ranks last or next-to-last among the major Latin American and Caribbean economies in all categories of the index. Despite its vast natural resources (reflected in its high Future Growth Environment score), the country's economy continues to struggle amid economic and political imbalances. However, capital flows to Argentina have steadily increased since 2020, signaling the possibility of a brighter future."
*"As the ninth largest economy in the world, Brazil is the main attraction of capital flows and foreign direct investment (FDI) for the region. The country benefits from a dynamic innovation economy and a sound financial system, as reflected in its highest score among Latin American and Caribbean countries (29th overall) in the GOI's Financial Services category. In recent years, the country has experienced steady inflows of FDI in the form of equity financing. This is, in part, the result of its strong mergers and acquisitions (M&A) activity, with six of the 10 largest cross-border M&A deals in 2023 taking place in Brazil."
*With its long history of market-oriented policies, Chile continues to lead the GOI ranking among Latin American and Caribbean countries. However, this year the country drops to fourth among the region's major economies and 112th in Economic Performance globally. While this partly reflects an adjustment following Chile's rapid economic expansion in 2021, it is also a sign of a possible slowdown in productivity. Even so, the country continues to attract a significant amount of capital relative to its GDP (8.0 percent in 2023), reflecting sustained investor interest, in part due to Chile's abundant natural resources."
*Reflecting the country's commitment to sustainable and resilient growth, Colombia outperforms E&D economies and the Latin America and Caribbean average in Future Growth Environment. However, high taxes and burdensome regulations continue to limit Colombia's growth. This is reflected in the country's relatively low score in the GOI's Economic Performance subcategory. Like Chile, foreign investment in this country is high relative to its GDP (6.2 percent in 2023), with most of its capital flows concentrated in FDI."
*As the largest trading partner of the U.S. and the second largest economy in the region, Mexico remains a key driver of performance in Latin America and the Caribbean. Mexico benefits from a high Economic Openness score and relatively good business sentiment. Its FDI flows have proven remarkably resilient, increasing even in 2020, when most countries experienced a drop in foreign investment. In the three years after 2020, Mexico has maintained a relatively large share (42.5 percent) of its FDI in manufacturing, although the share of flows to this sector has declined in the LAC region."
Juan Pablo Álvarez, Bloomberg Línea