Foreign Direct Investment in Central America


News from Panama / Thursday, June 23rd, 2016

Foreign-Direct-Investment

With 43% of the total, in 2015 Panama continued to be the largest recipient of FDI in the subregion, followed by Costa Rica (26%), Honduras (10%) and Guatemala (10%).

From the chapter Central America in the report on Foreign Direct Investment in Latin America and the Caribbean:

Central America: the Change in the Energy Matrix

FDI in Central America increased by 6% in 2015 and reached 11,808 million dollars. 

With 43% of the total, Panama continues to be the main recipient of FDI in the subregion; followed by Costa Rica (26%), Honduras (10%) and Guatemala (10%) (see Map I.2). In the past year, the renewable energy and financial sectors have been highlighted as the main destinations of FDI inflows in the subregion. In October 2014, Citibank announced its intention to sell its assets in five Central American countries (Costa Rica, El Salvador, Guatemala, Nicaragua and Panama) and in Peru. Among those interested in acquiring Central American assets, valued at about 1,500 million dollars, were the Spanish bank Banco Popular and the Colombian institutions Aval and Banco Promérica. However, the negotiations were unsuccessful. In the end, Citibank’s assets were sold separately: the Canadian bank Scotiabank acquired the operations in Costa Rica and Panama; the Honduran group Ficohsa purchased the assets in Honduras and Nicaragua; the Nicaraguan group America bought the operations in Guatemala, and the Honduran Group Atlantis acquired the assets in El Salvador. Meanwhile, the US insurance company American International Group, Inc. (AIG) sold all of its operations in the subregion (El Salvador, Guatemala, Honduras and Panama) to the Panamanian company ASSA, which already had activities in Costa Rica, El Salvador, Nicaragua and Panama.The sale of the assets of Citibank and AIG to mainly Central American institutions will contribute to greater enterprise integration in the subregion.