Investment Flows: Central vs. Latin America


News from Panama / Wednesday, August 31st, 2016

foriegn-direct-investment-nepal

Bucking the historical trend, since 2013 the isthmus has taken off positively as an investment destination compared to other Latin American countries.

A study by the CABI highlights how in recent years the Central American region, including the Dominican Republic, has been “seen with new eyes” by the rest of the world, as demonstrated by a study on Gross Capital Formation and Imports of Capital Goods variables, in Latin American countries.

“… As can be seen, both in the Capital Goods Imports and in Gross Capital Formation, the first 4 countries are in the CA6RD region, even the regional average is higher than any country in the LATAM region. In the other 3 variables: international financial flows (CA6RD 8.7% and LATAM 5.0%), credit awarded to the private sector by banks (CA6RD 10.4% and LATAM 1.0%) and investment flows to the Banking Sector (CA6RD 9.6% and LATAM 0.2%), the average growth in CA6RD is superior to the LATAM region. Thanks to globalization, the world has changed its way of visualizing countries and regions, increasingly seeking opportunities to segment and identify them.”