More than 60% of Spanish companies plan to increase their investment in Latin America in 2025

Madrid, May 6, 2025 – The Latin American market remains an attractive destination for Spanish investment in 2025. According to the latest findings, 64% of Spanish companies expect their revenue in the region to grow over the next three years. Notably, 39% of large firms and 28% of SMEs surveyed believe that Latin America will account for a larger share of their business than Spain within that timeframe. These are among the key takeaways from the 2025 Report on Spanish Investment in Latin America, produced by IE University in collaboration with Auxadi, Iberia, and the Leading Brands of Spain Forum, and presented today at Casa de América. 

"Despite global instability and trade tensions, Spanish companies continue to view Latin America as one of their main markets. Alongside the European Union, the region is where they expect the highest growth in turnover over the next three years," said Juan Carlos Martínez Lázaro, the report's director and an economist at IE University.

"Some 63% of the Spanish companies participating in the report say they will increase their investments in the region in 2025. Among SMEs, this figure stands at 50%. Most new investments will be driven by organic growth (60%), while over a third (37%) of companies also express openness to pursuing acquisitions in the region," Martínez Lázaro added.

The report was presented at Casa de América, in an event that featured León de la Torre Krais, Director of Casa de América; Andrés Meoli, Director of Corporate Business Development at IE University; Víctor Salamanca, CEO of Auxadi; and Marina Colunga, Iberia's Commercial Director for Latin America. A discussion panel followed the presentation, featuring Quirino Ordaz Coppel, Mexico's Ambassador to Spain, moderated by Luis Miguel González, Editor of El Economista (Mexico).

According to the report's authors, Spanish companies' outlook on the economic situation in Latin American countries remains largely consistent with last year's, with one exception: Argentina. The country has improved its image as an investment destination, and experts anticipate it will lead economic growth in 2025. Following Argentina, respondents highlight Uruguay, the Dominican Republic, Costa Rica, and Chile as the countries with the most positive outlooks. Mexico and Brazil, the region's two largest economies, are expected to experience more moderate economic performance. The study underscores Latin America's resilience in an increasingly complex global environment. 

"This is a region full of opportunity," said Marina Colunga, Iberia's Commercial Director for Latin America. "Iberia is proof of that: after nearly 80 years connecting Europe and Latin America, we're continuing to invest and expanding our capacity to build bridges across the Atlantic. This supports our purpose of fostering prosperity in the countries where we operate. Just our Latin American routes alone generate over 156,000 jobs—direct, indirect, and induced—and contribute more than €2.3 billion to GDP." 

Víctor Salamanca, CEO of Auxadi points out that "The Ibero-American region has always represented opportunities for companies, but also great challenges. With Spanish investment being the second largest investor in the region, the new global context with the arrival of the Trump Administration and its monetary policy of "Make America rich again" generates some certainty, such as that the world has changed, but also many uncertainties, taking into account that the United States is the largest investor in Latin America. This report aims to contribute, providing clarity regarding what Spanish business executives think, about the present, but also the future of the region."

LATIN AMERICA, A STABLE PARTNER FOR SPANISH COMPANIES

Despite trade tensions and geopolitical uncertainty, Latin America remains, alongside the European Union, a key market for Spanish businesses. Around 70% of Spanish companies believe the region's economic climate in 2025 will be similar to 2024, with 26% rating it as "good" or "very good," according to the report.

As in previous years, political instability and exchange rate volatility are seen as the greatest risks to doing business in the region. To a lesser extent, 20% of companies view Chinese competition as a concern. In terms of strengths, Spanish companies highlight the appeal of the region's domestic markets—especially Brazil, Mexico, and Chile—and the availability of qualified labor, particularly in Mexico, Chile, and Colombia, as the main competitive advantages Latin America offers investors.