QCOSTARICA – Inflows of Foreign Direct Investment (FDI) in Costa Rica, Nicaragua and Guatemala fell during the first half of this year, compared to the same period last year.
In Central America, specifically, these three economies took a step back, while Panama, Honduras and El Salvador recorded growths of up to 888%.
Costa Rica dropped from receiving US$1.047 billion to US$1.022 billion of FDI in the first six months of 2015, representing a drop of 2%.
However, the average of the 16 Latin American countries and the Caribbean was a drop of 21%.
This behaviour is justified by the fall in investment in mining and hydrocarbons due to a drop in international prices, the slowdown in China dn the negative economic growth in the region.
The data was made available today by the United Nations Economic Commission for Latin America and the Caribbean.
Source: LaRepublica.net
The drop in foreign direct investment in Costa Rica is obvious to anyone involved in business, or keeps-up with the news. The Costa Rica Economy is in a Recession, due to the lack of the proper Government policies to stimulate growth. The correct solutions are obvious and have been stated many times over in my blogs on this site. Any political rhetoric which has been recently stated indicating that the Costa Rica Economy is expanding, is pure rubbish.
I agree with Rick. After traveling to other countries such as Panama, and Colombia, it is not difficult to realize that something is not right here. The difference in prices and ordinary costs of living are so apparent that it is easy to understand why investors are keeping their distance from Costa Rica.
On April 5, 2014, I posted a blog, now archived on this site, entitled, “Will Intel Be The First Of Many?”. In that blog, I cautioned Costa Ricans on electing a PAC Government as leading to eight difficult years economically speaking, the first four years being of economic downturn under the PAC Government, followed by four more years of economic recovery under a succeeding Government, probably formed by either of the PLN, or PUSC Parties. Unfortunately, it would appear that my prediction is coming true.