Panama and Honduras were the only two Central American countries to report increases in foreign direct investment in 2018 over the previous year, with year-on-year changes of 36% and 3%, respectively.
The growth of investments directed to Panama, which concentrated 51% of the sub-regional total, explained the increase that was reached in 2018 in Central America (9.4%), since except Panama and Honduras, the Central American countries received less Foreign Direct Investment (FDI) than in 2017, explains the report "Foreign Direct Investment in Latin America and the Caribbean 2019", produced by the Economic Commission for Latin America and the Caribbean (ECLAC).
Because of higher dividend repatriation and lower reinvestment of earnings, Foreign Direct Investment flows reported during the first quarter of the year totaled $177 million, 55% less than in the same period in 2018.
Central Reserve Bank (BCR) figures detail that between January and March 2018, and the same period in 2019, the attraction of Foreign Direct Investment (FDI) was reduced by $224 million, falling from $401 million to $177 million.
Seven bills designed to encourage investment are still pending in the legislative committees of finance, treasury, and economy.
Laprensagrafica.com reports that "The Legislative Assembly is about to close the first Legislative month of 2013 without having approved any of the reform initiatives and new laws proposed by the President, Mauricio Funes, to encourage investment.
The Salvadoran government is promoting a series of measures that are part of the model called "New Cycle for Investment, Development and Employment" which seeks to give renewed impetus to private investment in the country.
A press release from the Presidency of the Republic of El Salvador reads:
The Economic Cabinet, led by the Technical Secretary of the Presidency, Alexander Segovia, revealed today in a presentation of this model the objectives, stages and actions with which the government is promoting economic takeoff and breaking the "vicious circle" which has impeded the country's development.
The Trade and Investment Office at the Ministry of Finance has registered 16 new investments since June 2011 to May 2012 amounting to $10 million.
An article in Laprensagrafica.com reports that "This department at the MINEC keeps track of investments in maquilas, industry and in commercial zones, Flores said. These investments have generated 1.660 direct jobs.
The International Services Act, which created the environment for the arrival of foreign banks, free zones and call centers, will be modernized.
The government of El Salvador is preparing amendments to the Law on International Services, which in its time allowed a multiplication of foreign investment in the financial, telecommunications and the maquila sector among others.
The President, Mauricio Funes, asked Salvadoran businessmen to join in the country’s process of recovery and growth.
"I ask our businesses to accompany this process, to invest and trust in the ability of Salvadoran society to succeed, " President Funes said today during his speech at a Memorial Day service (Día del Soldado in Spanish).
President Funes regretted that El Salvador is the first in Latin America whose businessmen have mostly invested abroad.