How Much is Left of FDI Income?

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.

Wednesday, September 4, 2013

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.

"... Panama and Honduras had an average of 81% and 68% of FDI inflows, respectively, Costa Rica (44%) showed intermediate levels, while El Salvador (25%) and Nicaragua (21%) recorded the lowest" reported Revistamyt.com.

"Although the CEO of ICEFI , Jonathan Menkos, says FDI flows show that Central America is still a very attractive for investments and that even in times of crisis it it had figures which grew faster than in the rest of the world, it captured about 8% more FDI than what was captured in 2011 and the global flow had contracted by 13%. "

The ICEFI believes that the region must redefine its policies in order to attract investment to help diversify each country's economic activities. This will depend on various factors such as technological inputs, links with other activities and strengthening the business sector, as well as a contribution of state resources.



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).

Central America: Foreign Direct Investment Up 10%

September 2018

Partly explained by the regimes created to encourage investment in different sectors, countries in the region went from receiving $11 billion in 2016, to $12.1 billion last year.

According to a study by the Center for Economic Integration Studies, in 2017 inflows of Foreign Direct Investment (FDI) in the region reached a record figure of $12.083 billion, registering an increase of 9.8% compared to 2016. When analyzing the period from 2010 to 2017, it can be seen that the inflow of FDI has increased considerably, showing a growth rate of 7.9%.

The Lure of Cheap Labor

June 2013

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.

More FDI for All of the Region in 2011

May 2012

Foreign Direct Investment in 2011, in millions: Panama - $2,790, Costa Rica - $2,104, Honduras - $1,014, Guatemala - $985, Nicaragua - $460, El Salvador - $386.

Notable for its importance to the respective economies, is the growth of the arrival of foreign direct investment in Nicaragua, which increased by $460 million compared to 2010.

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