In Guatemala, businessmen are asking the incoming government to create a public policy on foreign investment that incorporates issues such as fair and equitable treatment of investments, the minimum standard of treatment and the definition of arbitrariness.
Foreign direct investment (FDI) in the country is not having its best moment, as figures from the Bank of Guatemala indicate that in 2018 the flow captured was $1.031 million, 12% less than the $1.170 million reported in 2017. See official data.
Panama and Honduras were the only two Central American countries to report increases in foreign direct investment in 2018 over the previous year, with year-on-year changes of 36% and 3%, respectively.
The growth of investments directed to Panama, which concentrated 51% of the sub-regional total, explained the increase that was reached in 2018 in Central America (9.4%), since except Panama and Honduras, the Central American countries received less Foreign Direct Investment (FDI) than in 2017, explains the report "Foreign Direct Investment in Latin America and the Caribbean 2019", produced by the Economic Commission for Latin America and the Caribbean (ECLAC).
Because of higher dividend repatriation and lower reinvestment of earnings, Foreign Direct Investment flows reported during the first quarter of the year totaled $177 million, 55% less than in the same period in 2018.
Central Reserve Bank (BCR) figures detail that between January and March 2018, and the same period in 2019, the attraction of Foreign Direct Investment (FDI) was reduced by $224 million, falling from $401 million to $177 million.
Last year, foreign direct investment in the country reached $1.855 million, 5% more than in 2017, mainly because of the behavior of industrial and commercial activity.
The industrial sector maintained its leadership as the sector with the highest net foreign direct investment, recording a net amount of $579.6 million, which results in a 28.6% growth, and represented 69% of the total net flow, explains a report from the Central Reserve Bank (BCR).
During last year, foreign direct investment flows in the country totaled $5.549 million, 21% more than in 2017.
The most recent figures from the General Comptroller's Office of Panama detail that between 2017 and 2018 the flow of Foreign Direct Investment increased by $980 million, going from $4.569 million to $5.549 million.
Figures show that for the years concerned, reinvested earnings grew 4%, from $3.168 million to $3.281 million.
Despite the location and the fiscal benefits that in some cases the countries of the region offer, the lack of education of the population will be the main barrier to continue attracting large investments.
The lack of guarantee of finding the competent and sustainable human capital necessary for the proper operation of companies is an issue that negatively influences the attraction of important investments in Central America.
During 2018, Guatemala received $1.175 million in FDI, barely 0.5% more than the investment reported in 2017, mainly because of the political and legal uncertainty that ruled the country.
Figures from the Banco de Guatemala (Banguat) report that in the last five years, the country has gained $6,139 million in foreign direct investment (FDI), being 2014 the one that registered the highest year-on-year increase when reporting a 7% rate regarding 2013.
In the first half of the year, foreign direct investment flows received by the country totaled $620 million, 5.8% more than in the same period in 2017.
The main source of financing of Foreign Direct Investment (FDI) was reinvested earnings.By origin of investment, it was observed that most came from North America, with 37.6% of the total, followed by Europe with 20.3%.
In the first quarter of the year, FDI flows to the country totaled $318 million, reflecting an increase of 2% compared to the $311 million recorded in the same period in 2017.
From a report issued by the Central Bank of Honduras:
The composition of these flows reflects that the majority corresponds to reinvested earnings.By economic activity, those geared towards the Manufacturing Industry stand out (45.0% of the total); as well as Services (21.6% of the total); and Transportation, Storage and Telecommunications (11.4%).From the point of view of the origin of the investment, the most noteworthy figures are those originating from America with 56.1% of the total and Europe with 32.8%.
In 2016 44% of foreign direct investment in the region was concentrated in Panama, and a fourth consecutive year of increases was recorded, with 16%, while Costa Rica received 27% and increased by only 1.1%.
From chapter I of the report "Flows of FDI in Latin America and the Caribbean", by the ECLAC:
FDI into Central America grew by 3.7% in 2016 and totaled 11,833 million dollars.The increase in investments to the two main recipients of the subregion -Panama, which recieved 44%, and Costa Rica, 27%- compensated for the drop in FDI to the other Central American countries.
The bill submitted by the Executive aims to increase legal certainty and transparency of processes through improved tender mechanisms.
The Executive presented a bill for public and private investment classified as urgent, only days after the US Congress passed a law whichputs conditions on loans from international institutionsto the government of Daniel Ortega.
Determinants of investment, committed figures, and key economic sectors in the region in which Colombian companies have ventured into in recent years.
From the summary of the document by Cepal: "Colombian Investment in Central America":
The main objective of paper on Colombian investment in Central America is to analyze the business strategies that have led to increased Colombian foreign direct investment (FDI) in Central American countries.
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 private transport company has announced it will invest $3.5 million in the opening of a service center and support for the operation of the company in Latin America.
From a statement issued by the CINDE:
San Jose, January 26, 2016 -Uber has announced the establishment in Costa Rica of its first Center of Excellence in Latin America. The center will create more than 300 jobs by the end of this year.
Tax Memorandum of Tezó and Associates on the verification of the information presented in the annual declaration of income tax.
Tax Memorandum by Tezó and Associates:
In March 2015 the SAT sent an email containing a reminder to some Special Taxpayers in respect to the maturity of the annual Income Tax affidavit (ISR). This email includes he notice with the following paragraph: "In April 2015, the SAT will verify the information presented in the annual ISR affidavit, for which reason it asks, among other things, for the integration of non-deductible expenses and receivables reported and declared. "