Foreign investment falls 28% in Costa Rica

Foreign direct investment (FDI), which for years has helped finance Costa Rica's current account deficit, fell by 28 percent in the first quarter of this year compared to the same period in 2007.

Wednesday, July 23, 2008

Central Bank figures show that lst year FDI was equal to 1.2 times the current account deficit in the balance of payments.
Now it looks as though economic conditions in the number one foreign investor nation, the United States, will result in a reduction in FDI.
The situation is even worse because the current accounts in the nation are deteriorating as exports fall and the cost of oil imports rises.

More on this topic

Which Economies Attracted the Most Investment?

August 2019

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).

Investment Flows: Central vs. Latin America

August 2016

Bucking the historical trend, since 2013 the isthmus has taken off positively as an investment destination compared to other Latin American countries.

A study by the CABI highlights how in recent years the Central American region, including the Dominican Republic, has been "seen with new eyes" by the rest of the world, as demonstrated by a study on Gross Capital Formation and Imports of Capital Goods variables, in Latin American countries.

Guatemala: Foreign Investment Stagnates

December 2011

The country is not able to attract the capital that flows into the region, despite being the largest economy.

Costa Rica and Honduras are the countries who received the most foreign direct investment in Central America in 2011, leaving behind Guatemala near the bottom of the list.

Foreign investment in Guatemala decreases

December 2008

The flow of foreign investment has had its ups and downs in the last few years, and is expected to close this year, 2008, with a slowdown of 7% compared to last year.

In 2007, the growth of Foreign Direct Investment was 22.3 percent, while this year it closed at 15.8%, according to estimates from Invest in Guatemala, that were presented yesterday.

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