Regime says Nicaragua to receive US$2,534.5 million in gross foreign direct investment in 2023

Amid the exit and closure of some international companies, economic officials have highlighted the attraction of $2,534.50 million in gross foreign direct investment (FDI) as one of the great achievements of 2023. This amount represents an increase of 37.6 percent, which is equivalent to 692.20 million compared to 1,842.30 million in 2022.

Officials did not specify which countries these resources came from, limiting themselves to saying that the growth of FDI is the product of greater investment in companies in the industry, energy and mining, commerce and service sectors.

“While impacted in the context of the pandemic, other outward flows showed improvement. Thus, foreign direct investment (FDI) Gross registered 2,534.50 million dollars, says the annual report of the Central Bank of Nicaragua (BCN) and regarding net FDI, it details that 1,230.10 million dollars were registered during 2023, which is 63.70 million dollars less compared to 1,293.8 million. Is. Net FDI in 2022.

According to the report Gross FDI $2,534.50 million They are equivalent to 14.2 percent of gross domestic product (GDP); and reflects “increased investment in industry, energy and mining, and commerce and service sectors”. These sectors are the same as those reported by BCN in the FDI report for the first half of 2023; Which means the trend remains the same throughout 2023. However, in the annual report, BCN does not mention the origin of FDI.

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Record gross FDI and remittances

According to the BCN report, there were “favorable conditions for greater outward flows, such as remittances, foreign direct investment (FDI) and income from tourism” through 2023. And the current account balance was financed mainly through FDI inflows. Furthermore, he attributes the increase in investment to improved expectations of companies and economic agents in general.

“The development of the global economy also presented opportunities for the national economy, in particular, the shorter than expected global economic recession allowed external demand for national products to be maintained, in the context of favorable international prices for exportable raw materials. .Thus external conditions also contributed to the country’s economic growth through increased earnings from exports, remittances, foreign direct investment and tourism,” the BCN report says.

Apart from highlighting the increase in gross FDI, which crossed the $2,500 million barrier for the first time, the document highlights the growth of remittances, which totaled $4,460.10 million last year, up 44.5 percent compared to $3,224.9 million. is more. In 2022. Like gross FDI, remittances sent by Nicaraguans from abroad set a record, approaching $5 billion annually for the first time.

Exports and tourism also increased

The other two sources of foreign exchange earnings, exports and tourism earnings, performed less well. Exports of goods increased, but demand for free zone products was recorded low, mainly in the textile branch.

“Thus, the value of total merchandise exports and free zones was down 2.4 percent, totaling $7,543.3 million, with merchandise exports increasing by 4.0 percent; But with an 8.9 percent decline in free zone exports,” details BCN’s annual report.

While tourism income reached $739.2 million, this amount represents an inter-annual increase of 24.1 percent compared to $595.6 million generated by the sector last year. However, this amount is less than the $840.5 income generated by the tourism sector in 2017.