Panamanian President Laurentino Cortizo, sanctioned the law that creates the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
Deputies of the Panamanian Assembly approved in third debate the bill creating the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
The services of these multinationals will be able to be developed in different provinces of the country and will work in product manufacturing, equipment machinery, product packaging services, machinery and equipment, the Assembly informed.
The Panamanian Assembly approved in first debate the bill creating the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
This bill aims to create the Special Regime for the Establishment and Operation of Multinational Enterprises for the Provision of Services Related to Manufacturing (EMMA), in order to make Panama a more competitive nation in the global economy and adapt the attraction of investments in the provision of services and productive processes, manufacturing, as well as the generation of jobs and technology transfer, the Assembly reported.
In the context of the tense diplomatic and commercial relationship between the two world powers, Central American countries could have the opportunity to attract new investments, as it is estimated that some American companies would need to migrate their operations to the American continent.
As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S.
In order to redirect public resources due to the covid-19 outbreak, the government decided that investment projects that have not started to be implemented and those that are at an advanced stage will be suspended.
A letter signed by the Minister of Finance, Nelson Fuentes, and sent to the heads of state institutions, explains that the programs and projects contained in the Budget and Annual Public Investment Program Law (PAIP) are suspended.
Because of the tension between the productive sector and the government, coupled with the lack of official statistics from the Central Bank, some companies in Nicaragua have chosen to stop providing information to the authorities.
In an attempt to hide the complicated economic situation, the country is going through, local authorities have not published information on the Monthly Economic Activity Index since February 2019, when the year-on-year drop was 7.5%. This prevents businessmen from making decisions based on the real situation of the economy.
Strengthening government institutions in the areas of contract enforcement, property rights protection and investor protection are part of the recommendations made by the IMF in its most recent visit to the country.
According to the international organization, policies to regain the confidence of the private sector, including a frank assessment of the impact of recent measures, are essential to promote economic recovery and compensate for increased poverty. In the short term, strengthening government institutions in the areas of contract enforcement and efficiency of the legal framework for dispute resolution, protection of property rights, investor protection, property registration, and insolvency resolution could significantly improve the country's competitiveness.
In Nicaragua, the authorities have not published information on the Monthly Index of Economic Activity since February 2019, when the year-on-year fall was 7.5%, a situation that prevents businessmen from making decisions based on the real situation of the economy.
Although Panamanian businessmen recognize that in the first months of the Cortizo administration there have been advances that could improve the performance of the local economy, it is predicted that the reactivation could take longer than expected.
The proportion of public debt to GDP is about to reach 60%, the maximum limit allowed by law, which will force the government to restrict capital spending in the coming years, in order to avoid further deterioration of public finances.
The Treasury authorities indicated that at the end of 2019 the country's public debt will represent 59% of production, adverse scenario for investment, because according to the fiscal rule, when the proportion reaches 60% will affect capital spending, since the government must begin to contain expenditures.
Most of the reported increase in foreign investment flows to the country in the first quarter of the year was explained by investments in the electricity sector.
In the first quarter of 2019, figures from the Bank of Guatemala (Banguat) report a considerable increase in foreign direct investment (FDI) compared to the same period last year, going from $293 million to $340 million.
After 14 months of socio-political crisis in Nicaragua, companies in the country face a reduction in consumption and investment, as well as the impact on national economic activity of rising unemployment.
According to studies conducted by the Consejo Superior de la Empresa Privada (COSEP) and the Nicaraguan Foundation for Economic and Social Development (FUNIDES), the local economy faces a contraction in economic activity that continues to deepen, prevailing uncertainty and distrust in consumers and investors.
During the first three months of the year, foreign direct investment flows in the country totaled $1.648 million, 18% more than in the same period of 2018.
The report of the Economic and Social Analysis Directorate of the Ministry of Economy and Finance (MEF), states that between the first quarter of 2018 and the same period of 2019, the amount of Foreign Direct Investment (FDI) grew by $254 million.
The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in.
On March 8, Moody's decided to raise its long-term issuer rating in foreign currency from Baa2 to Baa1, arguing that the outlook remains more favorable in the medium term.
Businessmen in Costa Rica ask the government to complete projects that promote the reactivation of the economy next year, where construction and agriculture are the highest priority activities.
In addition to the economic rebound, the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) expects the country not to focus on single-issue discussions, as happened in 2018 with the fiscal plan.
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