During the first nine months of 2018, Foreign Direct Investment flows to the country totaled $457 million, almost 5% more than in the same period in 2017.
From the Central Reserve Bank statement:
At the end of the third quarter of 2018, increases in foreign direct investment (FDI) totaled US$1,221.8 million, reflecting a 24.1% increase (US$237.2 million) over the previous year.
Since the free trade zones law was amended, almost 100 companies have closed in Guatemala in the last two years, and by 2019 the figure is expected to keep growing if the regulatory framework is not modified.
Data from the Bank of Guatemala detail that from January to October of this year, exports of companies in free trade zones totaled $471 million, 2% less than the $479 million registered in the first ten months of 2017.
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.
Mariott International, The Luxury Collection, W Hotels and Ritz-Carlton Reserve, presented to Dominican Republic authorities their plans to develop luxury tourism projects in Puerto Plata.
From the statement of the Presidency of the Dominican Republic:
December 11th, 2018. A group of foreign investors met today with President Danilo Medina and expressed their interest in transforming the country's northern coast into a luxury tourism destination.
U.S. medical technology company Stryker announced the opening of a financial services center in the country, through which it will support its operations in the region.
From the statement of the Costa Rican Coalition of Development Initiatives:
San José, Costa Rica. November 5, 2018. Stryker, one of the world’s leading medical technology companies, announced it will open an office in Costa Rica, as it creates a hub for finance activities and services.
Foreign Direct Investment decreased from $1.658 million to $1.199 million between the first half of 2017 and the same period in 2018.
According to data from the Central Bank of Costa Rica reported a decrease in the flow of the Foreign Direct Investment (FDI) during the first half of 2018, contrasts with the increase of 52% recorded in the same period last year, given that between the first six months of 2016 and the same period in 2017, the flow went from $1.088 million to $1.658 million.
The medical device manufacturer Precision Concepts Medical Technologies will invest $5 million in the construction and operation of a new plant in Costa Rica.
According to the Costa Rican Coalition of Development Initiatives (Cinde), the health sector company's investment will focus on the construction of a building and the implementation of state-of-the-art technology.
During the first semester of the year the country acquired $546 million in Foreign Direct Investment flows, 4.6% less than the $573 million reported in the same period of 2017.
According to the figures of the Banco de Guatemala of the total Foreign Direct Investment (FDI) from January to June of this year, $183 million went to the Trade sector, $97 million to the Manufacturing Industry, $89 million to Banks and insurance companies, $58 million to Telecommunications and $52 million to Electricity.
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%.
After Panama reported a 17% year-on-year decline in foreign investment flows in the first quarter, the cumulative figure for the first six months recorded a 13% decrease.
The latest report by the General Comptroller of the Republic, indicates that the annual fall in the flow of Foreign Direct Investment (FDI) reported from January to June was 13.2%, down from $2.674 billion in 2017 to $2.321 billion in 2018.
Entrepreneurs in Costa Rica are warning of the negative impact of not maintaining, in the new law of public finances, the VAT exemption on local purchases of goods and services carried out by free zone companies.
The Association of Free Trade Zone Companies of Costa Rica (Azofras) points out that in the bill to strengthen public finances that is being discussed in the Assembly, motion 302 was not revised, a motion which aims to keep the VAT exemption on the local purchases of goods and services carried out by free zone companies, both to be incorporated into export products and for their operations.Currently the sales tax exemption applies.
In the first half of the year, foreign direct investment flows received by the country totaled $620 million, 5.8% more than in the same period in 2017.
The main source of financing of Foreign Direct Investment (FDI) was reinvested earnings.By origin of investment, it was observed that most came from North America, with 37.6% of the total, followed by Europe with 20.3%.
During the first semester of 2018, direct foreign investment received by Salvadoran industry grew by almost 40% over the same period last year.
During the first quarter of 2018, Net Direct Foreign Investment increased by 42%, amounting to US $238.8 million.Gross entries totaled US $380.6 million, while gross outflows decreased by 34.4%, reaching US $141.9 million.
Having a minimum of five full-time permanent employees is one of the requirements that companies must meet in order to obtain a Regional Offices of Multinational Corporations license, if a bill from the Varela administration succeeds.
The bill presented by the Ministry of Commerce and Industries (Mici) to the National Assembly contemplates, among other things, the new conditions that must be met by companies seeking to obtain a license as Regional Offices of Multinational Corporations (SEM by their initials in Spanish).In addition, it details a proposed law reform, under which companies must generate annual operating expenses in the country of at least $500,000.
The free zones in the Dominican Republic annually export about $5.7 million, and entrepreneurs claim that their results outperform countries such as Costa Rica, Chile, Colombia and Puerto Rico.
According to the Dominican Association of Free Zones (Adozona), the sector accumulates investments of $4.474 million, which come from the United States, the European Union, Canada, Brazil, Taiwan and South Korea.