After having recorded a slight fall in 2017, companies in the free trade zone regime of Nicaragua plan to achieve a 5% growth in their exports this year.
One of the engines of growth that is expected to be achieved in 2018 is investments and reinvestmentson the part of existing companies that are anticipated for this year. According to free zone entrepreneurs, between $300 million and $400 million could be invested.
Although clothing and car wiring harnesses continue to lead, the number of types of goods exported under the free zone regime has gone from ten in 2008 to 20 today.
Production and export of clothing and wiring harnesses are still the main goods produced and exported under free trade zone conditions, but now others have been added such as as cigars, edible oil, fruits, leather shoes, paper, cardboard, and manufactured leather covers for furniture.
Falls in sales of textiles, machinery and transport equipment accounted for the 6% annual contraction in manufacturing activity in May this year.
In the case of textiles, a reducicón of 8.7% in industrial production in May is attributed to lower production of knitted or crocheted fabrics, clothing and leather production. In the machinery and heavy equipment sector, which fell by 48%, a reduction in demand from the Mexican automotive industry is, according to Central Bank data, the reason for the poor performance.
An industrial park has been inaugurated with 55 thousand square meters dedicated to the production of textiles in the free zone Siglo XXI, in Niquinohomo, in the department of Masaya.
The $20 million investment will generate 4,500 jobs in industrial buildings that occupy 45 thousand square meters of the total area of the park.
Mario Blandon Zelaya, president of the Free Trade Zone Niquinohomo "Siglo XXI" and the Chamber of Free Zones of Nicaragua, told Elnuevodiario.com.ni that "... in this textile complex textiles will be developed that will be exported to the countries of that are part of the Free Trade Agreement with Central America and the Dominican Republic ."
In the first half of the year sales to outside of the free zone regime were $1.138 billion, up 13% from the $1.007 billion generated in the same period in 2013.
The presence of new foreign firms operating under the regime and the rise in the volume produced, despite a reduction in some prices in the international market, explain the 13% increase in exports from the sector.
During 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.
Information published by the Central Bank of Nicaragua (BCN):
In 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.The sectors which participated the most in the absolute growth of exports from the free zone in relation to 2011 were chasis, which contributed $65 million (42.9% of total), fishing, $37.6 million (24.8%), textiles, $32.2 million (21.3%) and tobacco $23.1 million (15.3%), among others.
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