Nicaragua, second country in the region with highest FDI growth

May 8, 2012 - PRLog -- The Economic Commission for Latin America and the Caribbean (ECLAC) in a recent report stated that Nicaragua was the country with the second highest increase in foreign direct investment (FDI) in the Central American region in 2011, with a 91 percent growth from US$508 million in 2010 to US$968 million in 2011.

According to the report, presented on May 3rd in Santiago, Chile, Latin America and the Caribbean received US$153 billion in terms of FDI in 2011, the highest amount attracted by the region to date and a figure that could be surpassed in 2012.

In Central America, FDI inflows in 2011 increased by 36 percent versus 2010, while Caribbean figures increased by 20 percent. “Despite the uncertainty that still roams the global financial markets, the economies of Latin America and the Caribbean attracted important quantities of FDI in 2011, figures that will continue to remain high in 2012”, highlighted Alicia Bárcena, Executive Secretary of ECLAC.

Nicaragua’s performance was also highlighted in ElSalvador.com, a Salvadoran newspaper that stating that “the best example in how to promote a country is given by Nicaragua, through the investment promotion agency, PRONicaragua, which was recently chosen as the institution with the best performance in its field, according to the World Bank and the United Nations Organization.”

In this context, Javier Chamorro Rubiales, Executive Director of PRONicaragua indicated that FDI in Nicaragua is expected to surpass US$1,000 million in 2012. He added that “the country is attractive due to the high levels of personal safety, competitive production and labor costs in manufacturing processes, and a series of fiscal incentives, as well as the country’s many trade agreements”.

Mario Flores, renowned economist and Ex-President of the Central Bank of Nicaragua, also stated that the country has gained credibility due to its macroeconomic management, a trait that is attractive to investors.

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 diversified, growing from 38 countries in 2010 to 41 in 2011, where countries like Canada, Spain and Korea stand out with a growing participation.