China Invests $29 Billion in Latin America

Western banks and investors began to steer clear of emerging markets, including Latin America, in 2015. But China has continued to pour money in. Two of the nation’s large development banks dumped $29 billion into the region last year, according to the Inter-American Dialogue and Boston University. Brazil was the largest benefactor and the bulk of the funds went towards infrastructure, an area often cited by economists as the largest factor holding back GDP growth in Latin America. “It is Chinese finance to the rescue,” writes Kevin P. Gallagher for the Financial Times. “The fact that the majority of the finance is in infrastructure and manufacturing is conducive to development.”