Foreign investment falls 62% in El Salvador

During the last 15 years, foreign investment rose only with the sale of banks and privatizations.

Friday, December 19, 2008

In 2007 $494.8 million entered the country compared to the $189.9 this year.

The reason for the drastic reduction in FDI is simple. In 2007 the sale of Salvadoran banks were completed, causing the investments to increase disproportionately compared to investments in 2006.

Except for the sale of the banks, the FDI in 2008 dropped because of two main reasons: one is the global financial crisis and the other is the pre-electoral environment, according to several economic analyst.

More on this topic

Foreign Investment in El Salvador Still Falling

December 2010

FDI fell from $ 1.508 million in 2007 to $ 72 million in 2010. Businessmen claim the cause is the lack of confidence and certainty in current government economic policy.

2007: $ 1508 million, 2008: $ 784 million 2009: $ 431 million, 2010: $ 72 million. There should be a special consideration with the 2007 FDI numbers since they were affected by exceptional events such as the sale of banks to multinational banking corporations.

FDI down in Central America and Caribbean

September 2009

The manufacturing sector as a whole saw a decline in FDI due to a sharp drop in flows to Central America and the Caribbean.

In Central America and the Caribbean (other than financial centres), the decline in FDI inflows was largely due to a 20% fall in flows to Mexico, which mainly resulted from a halving of inflows to the manufacturing sector (CNIE, 2009).

Costa Rica: Foreign Investment Would Fall 30%

September 2009

In 2009, Foreign Direct Investment would fall 30% when compared with 2007, when a record $2.02 billion were received.

This was stated by Commerce Minister Marco Vinicio Ruiz, who added that the amount for 2008 was 7% higher than 2007.

Website Univisión published further comments by Ruiz: "The reduction for 2009 will be close to 30%. It won't affect manufacturing companies, but real estate and tourism".

The Race to the Future

August 2009

¿Which are the most attractive countries for Foreign Direct Investment? In Central America and the Caribbean, Puerto Rico is ahead, followed by Costa Rica and Dominican Republic.

fDi Magazine presented the results of their first fDi Countries of the Future 2009/10 Award.

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