Doing business in Central America

Side by side, country by country: the most problematic factors for doing business in Central America.

Wednesday, September 9, 2009

We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country.

The level of productivity, in turn, sets the sustainable level of prosperity that can be earned by an economy. In other words, more-competitive economies tend to be able to produce higher levels of income for their citizens.The productivity level also determines the rates of return obtained by investments in an economy. Because the rates of return are the fundamental drivers of the growth rates of the economy, a more-competitive economy is one that is likely to grow faster in the medium to long run.

Comparing the key complications for doing business in Central America gives us insight to better face and eliminate them on a national level, as to direct our regional investments more efficiently.

More on this topic

Central America: Which country is best to do business in?

November 2017

Find out in which country of the region it is easiest to obtain a construction permit, where the least taxes are paid, where a creditor is more likely to recover a debt, and where minority investors are most protected.

The World Bank has presented its Doing Business 2018 report, which measures regulations that favor or restrict business activities. Doing Business is made up of quantitative indicators measuring business regulations and the protection of private property rights that are comparable in 190 economies over time.

How to Facilitate the Creation of New Business

October 2017

In Guatemala, four bills are being prepared to facilitate registration of one-person companies, export and import of goods and to regulate bankruptcy of a company.

The goal of the National Competitiveness Program (Pronacom) is to implement a series of measures to help improve the country's deteriorating business climate, which, in addition to being affected by political problems, continues to face the serious problem of excessive bureaucracy. Pronacom is working on four bills that it plans to present next year.

Central America falls in Ease of Doing Business

November 2010

Position in 2010 Rankings: Panama 72 (62 in 2009), El Salvador 86 (80), Guatemala 101 (100), Nicaragua 117 (119), Costa Rica 125 (121), Honduras 131 (128).

With the exception of Nicaragua, which rose two places, the Doing Business 2011 ranking shows that easiness of doing business in the Central American countries has deteriorated, at least in relation to other countries.

Latin America Cutting Red Tape -- Slowly

September 2008

If you are thinking of starting a business in Latin America, arm yourself with patience.

It takes 20 times longer to open a company in many countries in the region than in the United States, Singapore or New Zealand.

According to a new report by the World Bank's International Finance Corp., several Latin American countries continue to be among the world champions of bureaucracy, while Eastern European, Asian and African countries are moving much faster to reduce government red tape, making it easier for its people to start new businesses.

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