FLARblog | Trade and FDI in Latin America in the current landscape of geoeconomic fragmentation

The global economy is undergoing a reconfiguration process that is characterized by growing geoeconomic fragmentation, which is defined as the tendency for trade, investment, and global value chains to divide into geopolitically aligned blocs. This phenomenon, which is distinct from deglobalization, is driven by state-led strategies aimed at reducing critical dependencies and strengthening economic security (Blackwill & Harris, 2016). This fragmentation presents both challenges and opportunities for Latin America, depending on the region’s ability to adapt and position itself strategically.