Uncertainty Discourages Investments in Nicaragua

Between the first semester of 2018 and the same period of 2019, the flows of Foreign Direct Investment reaching the country decreased by 25%, a decrease that is explained by the uncertainty that predominates among businessmen, derived from the political and economic crisis.

Wednesday, October 30, 2019

According to official figures, from January to June of this year the country received $364 million in Foreign Direct Investment (FDI), which is less than the $483 million received in the first six months of 2018.

See "One year in crisis"

Laprensa.com.ni reviews that "... FDI has been concentrated in the productive sectors of goods, such as manufacturing, electricity generation, and the service sector mainly in telecoms and services activities."

The article adds that "... In the first half of this year, FDI has been attracted by the industrial sector, which is estimated to attract 113 million dollars. In the financial sector there was an investment of 96 million dollars, in trade 57 million dollars, in communications 48 million dollars and in mines 31 million dollars."

According to reports from the Nicaraguan Foundation for Economic and Social Development (Funides), FDI reports negative year-on-year variation rates since the fourth quarter of 2017, however, since the outbreak of the crisis in April 2018 the situation has become even more complicated.

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More on this topic

Foreign Direct Investment is Stagnating

December 2018

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.

Tough Times for Tourism

December 2018

At the end of 2017 and beginning of 2018, touristic companies in Nicaragua were reporting a good performance, but the political situation in the country has generated a crisis that is still unsolved.

In 2017, tourism generated $840 million in revenue for the Nicaraguan economy, 31% more than in 2016, growth that improved the companies' expectations at the beginning of the year, since in the first quarter of 2018 the forecasts were that by the end of this year revenues could reach $900 million.

The Real Impact of the Crisis

September 2018

Five months after the socio-political crisis in Nicaragua, it is estimated that this year Gross Domestic Product will contract between by 2.1% and 4%, in real terms.

The Nicaraguan Foundation for Economic and Social Development (FUNIDES) has updated its estimates on the economic and social impact of the crisis in 2018, in which it poses a first scenario that assumes that people and companies will adapt to a "new reality". In this context, the losses in added value would amount to $946 million.

FDI Up 8% in Honduras

May 2010

The country received $207 million in Foreign Direct Investment (FDI) during the first four months of the year, 8% more than the same period of 2009.

“Should this trend continue, FDI for 2010 would sum between $800 and $850 million”, reported Laprensa.hn.

Data from the Honduran Central Bank shows that in 2009 the country attracted just $484 million in FDI, the worst since 1999.

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PRONicaragua

PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
Operates in Nicaragua
Phone: (505) 2270 6400

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