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Nicaragua sets new record in FDI attraction
The Government of Nicaragua recently revealed that the country received US$967.9 million in foreign direct investment during 2011, a new record for the country in FDI inflows and a 91 percent growth when compared to 2010.
The FDI attracted in 2011 was led mainly by the energy, telecommunications and free zones sectors, which together accounted for 52 percent of total FDI. The development of these sectors has contributed significantly in increasing the country’s productive capacity and boosting its economy.
Specifically, in the energy sector, approximately 70 percent of the projects generated renewable energy, reducing the country’s dependency on fuel and thus demonstrating the country’s commitment in transforming its energy matrix. Additionally, investment in the telecommunications sector increased by 35 percent when compared to 2010. In the free zones sector, agricultural products and apparel manufacturing predominated, as well as business process outsourcing (BPO) services.
“The country’s historic figures in foreign investment flows are a result of the government’s effort in working alongside the private sector and labor unions in order to achieve macroeconomic stability in the country. The reduction of poverty and the shift in the energy matrix, are key factors that have led to social peace in Nicaragua”, commented General Alvaro Baltodano, Presidential Delegate for Investments.
In 2011, Nicaragua attracted a total of 284 foreign investment projects, a growth of 57 percent when compared to 2010. Additionally, the origin of FDI has diversified, growing from 38 countries in 2010 to 41 in 2011, where countries like Canada, Spain and Korea stand out with a growing participation.
The country has also experienced a diversification in the foreign investment projects attracted with new and innovative subsectors including footwear manufacturing and horticulture.
According to preliminary figures, in 2011 Nicaragua held the highest index of FDI as a percentage of GDP for fourth consecutive year in Central America, reaching 14.1 percent. This figure will certainly allow the country to compete for first place in this index in the whole Latin America and the Caribbean region.
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PRONicaragua is the Nicaraguan Investment Promotion Agency, established in 2002. It is a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The agency provides complimentary support services to qualified investors seeking investment opportunities in our country.