Despite the current economic crisis, outward foreign direct investment (OFDI) by Latin American and Caribbean enterprises continued its upward trend in 2008 (annex figure 1). OFDI by firms in the region reached nearly USD 35 billion in 2008, an increase of 42% with respect to 2007 (ECLAC, 2009a). However, several of the factors that fostered such growth have recently changed, possibly affecting OFDI prospects for 2009. This Perspective briefly explores these changes and their potential effects on firms’ investing behavior, as well as some important countervailing factors that may cushion the effects of the economic crisis on Latin American firms’ investment plans. The recent increase is the result of the accelerated efforts of some Latin American companies (Trans-Latins) to expand operations beyond their borders (annex table 1). Brazilian firms led this trend, as their OFDI in 2008 accounted for over 60% of the region’s total. Chile was the second highest investor, followed by Venezuela (annex figure 2). In contrast, Mexico’s Trans-Latins were severely hit by the economic downturn in the North American market. This was manifested in the sharp contraction of the country’s OFDI from over USD 8 billion in 2007 to USD 686 million in 2008, although it did recover in early 2009. The internationalization trend of Trans-Latin enterprises resulted from a combination of factors: global and regional economic growth trends, 1 increases in productivity and innovation, knowledge transfer, improved supply chain capabilities, high international commodity prices, improved access to credit, and strong corporate profits among others. A number of these conditions have now changed. GDP in Latin America is expected to contract by 1.9% in 2009 (ECLAC, 2009b) and, coupled with falling commodity prices, tightening credit markets and increasing debt levels, will undoubtedly make investment more difficult for most Latin American firms.