For the third consecutive year, in 2017, foreign investment received by Guatemala fell compared to 2016, explained by a lack of legal certainty, particularly in the mining industry.
Even though no one expected great results at the end of 2017, the 3% fall with respect to foreign investment received in 2016 has worried the business sector, as it reinforces the downward trend seen since 2015, when the FDI received by the country was 12% lower than the amount reported the previous year.
In the first quarter of the year foreign direct investment was $313 million, only $2 million more than in the same period last year.
Of the total foreign investment received in the first three months of the year, 28% went to the electricity sector, 21% went to manufacturing, 16% to trade and 10% to the financial and banking sector.
Between 2009 and 2013 the revenues generated by the sector which outsources business services increased from $225 million to $650 million at the end of 2013.
For the development of this industry to continue "... Invest in Guatemala together with other institutions has designed a strategy with a vision for 2020 ", with the aim of achieving, over a period of five years, the generation of $2.3 billion in services and thus contribute 3.57% to the gross domestic product (GDP).
In the first six months of 2012 FDI amounted to $770 million, mainly devoted to the activities of energy, mining and textile industries.
In the first quarter FDI reached $405.9 million and $364.6 million in the second, surpassing the $523.5 million in the first half of last year, according to data from the Bank of Guatemala (Banguat).
The sector which attracted the most investment is power, says Luis David, director of the agency Invest in Guatemala, followed by the mining industry. The Tahoe Resources company alone is to invest $500 million in the San Rafael mine. "The figures reflect the confidence of investors in the country", said Luis David.
According to the country's agency responsible for encouraging foreign direct investment (FDI), the agro-industrial sector is the most promising and important.
Fanny Estrada, director of the Guatemalan Exporters’ Association (AGEXPORT), commented that in several cases, "while demand exists for a product there is insufficient supply capacity," and added that, "there is potential to increase output in these areas".
The objective is to provide unified direction to the different public and private efforts in trade and investment promotion.
The new entity could be named Guatemala Trade and Investment (GTI), and would coordinate the activities of Invest in Guatemala, the national competitiveness program (PRONACOM), and the Commercial Attachés (PACIT), through an executive committee composed by members of the public and private sector.
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.
Mario Marroquin Rivera, executive director of the investment promotion agency, said at a press conference that the projected figures for December 2008 show foreign investments for $837.8 million or $114.3 million more than for December 2007.
This year the flow of Foreign Direct Investment (FDI) continued its upward trend, which has been maintained for the last 8 years.
According to data from the Bank of Guatemala (Banguat), as of November 27, 2008, the FDI was at $759.7 million while for the same period in 2007 it was at $656.1 million.
The sectors that contributed to this increase include telecommunication, finance, mining, and call centers, indicated Mario Marroquin, director of the Invest office in Guatemala.