Contrary to the negative figures recorded in 2015 and 2016, in 2017 Peruvian direct foreign investment received by Guatemala totaled $82 million.
In addition to reversing the negative trend in 2015 and 2016, last year Peru became the fourth country in terms of the largest flows of direct investment registered in Guatemala, as it was only surpassed by the US, Mexico and Colombia.
A delegation of companies from the Mexican state of Jalisco has expressed interest in investing in sectors such as textiles, agriculture, services and construction.
After the visit to Honduras, the businessmen reported that in the next few years they intend to invest between $20 million and $100 million.
Miguel Landero, president of the Mexican Council of Foreign Trade, explained to Laprensa.hn that "... there is a lot of interest in investing in the country ...'In direct foreign investment we could be talking about an intention of $20 million to $100 million, just to start with'."
For the third consecutive year, in 2017, foreign investment received by Guatemala fell compared to 2016, explained by a lack of legal certainty, particularly in the mining industry.
Even though no one expected great results at the end of 2017, the 3% fall with respect to foreign investment received in 2016 has worried the business sector, as it reinforces the downward trend seen since 2015, when the FDI received by the country was 12% lower than the amount reported the previous year.
The union of Guatemalan industrialists will propose a development agenda, with the aim of improving economic conditions and recovering some of the investment lost in recent years.
The US government has highlighted tax incentives and public-private sector dialogue, but warns that deficiencies in the rule of law, and extensive executive control can create significant challenges for those doing business in the country, particularly smaller foreign investors.
From the executive summary of the report "Investment Climate in Nicaragua 2017" by the US State Department:
Amcham said that the lack of a clear strategy to attract foreign investment and uncertainty over key issues such as the emergent employment law are causing the country's business climate to deteriorate.
The views of the main chamber of foreign companies in the country do not coincide with those of Banco de Guatemala, which anticipates growth of 8.5% in foreign investment flows.In the view of Juan Pablo Carrasco, vice president of the Guatemalan Chamber of Commerce (AmCham), "... 'these figures are not realistic."What has happened specifically in the mining sector, with thesuspension of seven projects in a week, has affected the investment climate among foreign companies.
The country attracted $1,203 million last year, with highlights being an increase in capital from countries in the region such as Panama, Colombia and Guatemala.
In 2015 flows of foreign direct investment (FDI) from Latin America were higher than those received from North America, totaling $437.8 million, the largest share (36.4% of total), according to the Central Bank of Honduras.
The business sector believes that inefficient government bureaucracy is one of main factors contributing to the cumbersome nature of doing business in the country.
From a press release issued by the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP):
Costa Rica went up three places in the Global Competitiveness Report 2013-2014 prepared by the World Economic Forum, going from position 57 to 54.
Of the $34.095 billion in Foreign Direct Investment in Central America which arrived in the last 4 years $21.925 million left the region in the form of expenses.
The information comes from a report by the Central Institute for Fiscal Studies (ICEFI), which reveals that the most affected country is Guatemala, where outflows were 1.3 times more than income.
When choosing a destination for their investments, Panamanian businessmen see poor conditions for both physical and legal security in Honduras.
This was explained by the Panamanian ambassador in Honduras, Mario Ruiz, adding that lately, trade between the two nations has had difficulties because of the issue of insecurity which "has affected business and has generated concerns about continuing to invest".
Honduras, Guatemala, Nicaragua and El Salvador attract investment based on the exploitation of natural resources and unskilled, but cheap, labor.
A report by the Central American Institute for Fiscal Studies (ICEF), reveals that Central America recorded last year $9.70 billion in foreign direct investment (FDI), with Panama and Costa Rica being the recipients of about 60% of these flows.
$500 million is the estimated amount that has not been invested due to bad business climate, poor image and lack of institutional credit, which frightens investors away.
These are the indications of the economist and former president of the Central Reserve Bank, Mauritius Choussy: "In four years, the amount lost adds up to $2 billion, which could have generated more than 150,000 jobs.
Lack of policies for attracting investment and the climate of insecurity both legally and for citizens is scaring away local and foreign investors.
In terms of Foreign Direct Investment (FDI), this barely grew, by $22 million, during 2012, closing with $463 million while the previous year it had been $441 million.
"A recent report by the Economic Commission for Latin America and the Caribbean (ECLAC) specifies that the balance of private foreign investment at the end of last year was $516 million, while in 2011 was only $385," reported Elsalvador.com. Although it was $130 million (34%) more than the amount of investment in the previous year, El Salvador was placed, for the fourth consecutive year, among the countries with the lowest FDI inflows in Central America.
The slowdown in the economy and rising labor costs are reducing the competitiveness gap that the Asian giant has with other countries.
Investment in China rose by 17.4% in 2010 and 9.72% in 2011, however, official data from the Ministry of Commerce shows that foreign direct investment in 2012 totaled $116.010 billion, representing a decrease from the previous year, in this case of 3.7%.
Aeroman’s expansion plans depend upon the solution of the current conflict between the legislative and judicial powers, due to the legal uncertainty it generates.
The Executive Director of Aeroman, Ernesto Ruiz, said that the Canadian company Aveos, the majority shareholder of Aeroman, is closely following the current conflict and will not continue with its expansion plans until it has been resolved.