BOGOTA – Mexico City and Bogota are the two Latin American cities with the highest job growth rates in the last five years linked to foreign direct investment (FDI) known as greenfield investment, analysts told EFE on Saturday.
According to estimates made by Invest in Bogota, an investment agency created by the city’s chamber of commerce and the local government, the cities with the highest job growth rates in Latin America linked to FDI were Mexico City (15 percent), Bogota (14 percent), Sao Paulo (13 percent) and Monterrey (12 percent).
These four cities were followed by San Luis Potosi, Tijuana, Queretaro, Guadalajara, Lima and Silao, each with a growth rate of 7 or 8 percent in the last five years.
According to those same estimates, which are based on information from the Financial Times’ fDi Markets database, the highest job growth rates linked to FDI per country took place in Mexico (45 percent), Brazil (14 percent) and Colombia (7 percent), followed by Argentina and Peru (6 and 4 percent, respectively).
Altogether, FDI in new projects in Latin America helped create 1,367,526 new jobs through 6,875 initiatives in the last five years.
Figures for 2017 show that Bogota was the Latin American capital with the highest job growth rate linked to FDI, representing 2.2 percent of all jobs created, followed by Mexico City and Sao Paulo.
“In 2017, 14,082 jobs were created in Bogota through 155 non-extractive projects that represent 64 percent of all new jobs and 47 percent of the investments that arrived in the country,” said Juan Gabriel Perez, CEO of Invest in Bogota.
According to the agency, the sectors in which job growth increased the most include software and IT services (39 percent), the production of consumer goods (14 percent), the processed-food industry (12 percent), and communications services (10 percent).
Job growth linked to FDI is expected to continue to rise in Bogota in 2018, with an estimated “14,300 new jobs, 1.6 percent more than in 2017,” Perez said.