How Easy is to do Business in Central America?

Costa Rica and Panama are the economies of the region where businessmen find it easier to develop business, followed by El Salvador and Guatemala, and in the last two places, Honduras and Nicaragua.

Wednesday, October 31, 2018

The World Bank announced the results of the Doing Business 2019 report, which measures the regulations that favor or restrict the development of business activity in different countries. Doing Business consists of quantitative indicators on business regulations and the protection of private property rights, comparable in 190 economies.

A rating close to 1 means that regulations in the field of business enable the opening of companies and their activities

Central America situation:

After publishing in the 2018 report a slight improvement in the global ranking, going up from 62 to 61, in the last report Costa Rica worsened, falling from 61 to 67. However, the country is still the best positioned country in Central America.
See: "Costa Rica in Doing Business 2019 report"

Panama is the second ranked country in the region, as the global ranking registered no variations with respect to the previous year's report, remaining in 79th place. In the case of the global index, which refers to the rating the country receives according to the factors evaluated, a slight increase of 0.4% was reported between 2018 and 2019.

See: "Panama in Doing Business 2019 report"

After the significant progress registered in El Salvador between 2016 and 2017, when the country increased from 95th to 73rd position, this year a setback is reported, falling to 85th position in the global index.
See "El Salvador in Doing Business 2019 report."

Guatemala is the fourth best rated economy in the region, ranking 98th in the global ranking. Regarding the rating reflected in the global index, reported an improvement of 1% over that recorded in the 2018 report.
See "Guatemala in the Doing Business 2019 report."

Honduras kept falling in the global ranking, since in the most recent report ranked 121. In last year's report had fallen ten places with respect to the position in 2017, reflecting the decline in the conditions for doing business in this country.
See "Honduras in the Doing Business 2019 report"

Nicaragua is the worst ranked country in Central America, since in the 2019 report was ranked 132. Its slight fall in the ranking is followed by the decline from position 127 to 131 recorded in the 2018 report.
See "Nicaragua in the Doing Business 2019 report".

See Doing Business 2019.

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More on this topic

Doing Business in Central America: Have We Improved?

October 2019

Guatemala was the only country in the region that improved its position in the global ranking monitoring businessmen's conditions for doing business, while the others went backwards.

The World Bank released the results of the Doing Business 2020 report, which measures the regulations that favor or restrict the development of business activity in different countries.

Central America Loses Competitiveness

October 2019

In the 2019 Global Competitiveness Index, Costa Rica, Panama, Guatemala, El Salvador, and Nicaragua fell back in the ranking, while Honduras registered no changes and the Dominican Republic was the only country that improved.

According to the report by the World Economic Forum, during 2019 Costa Rica ranked 62 out of 141 countries.

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.

Global Competitiveness Report 2009-2010

September 2009

Central America: Costa Rica first (55 in the world), followed by Panamá (59), El Salvador (77), Guatemala (80), Honduras (89), Nicaragua (115).

• Switzerland leads the rankings of the World Economic Forum’s Global Competitiveness Report 2009-2010

• The United States falls to second place, with weaker financial markets and less macroeconomic stability

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