Trends Continue Positive For The New Nicaragua
Even while the economies of many countries around the world continue to sputter, recent reports from the International Monetary Fund and World Bank demonstrate that Nicaragua keeps pushing upward. This ongoing progress supports growing acknowledgement of the health of the Nicaraguan economy and the success of efforts to promote investment and economic activity. Along with other key factors, this growth further highlights Nicaragua as a place to invest.
IMF: Nicaragua’s Economy Leads Central America
The International Monetary Fund (IMF) announced in October that Nicaragua’s economy is projected to grow by 4% in 2011, pushing the country’s Gross Domestic Product (GDP) to $6.8 billion USD. In terms of all of Latin America, Nicaragua trails only Panama and Dominican Republic in economic growth.
Alvaro Trigueros, representative of the Salvadorian Foundation for Economic Development, congratulated Nicaragua not only due to the country’s current growth, but also because “the country strives to reach a seven percent growth in the long term.”
World Bank: Nicaragua Among Top Performers In Doing Business Report
Nicaragua was recognized for a number of improving factors in the World Bank’s 2012 Doing Business Report, a key reference tool for investors assessing where to invest or do business. The annual report “provides objective measures of business regulations for local firms in 183 economies around the globe,” with Nicaragua improving four spots to the 118th position.
Doing Business also is intended to offer an objective basis for understanding and improving the regulatory environment for business around the world. According to the report, “Nicaragua experienced an improvement in five of the ten categories included in this year’s report: Registering Property, Paying Taxes, Trading Across Borders, Enforcing Contracts and Resolving Insolvency. The World Bank recognizes Nicaragua as one of the 30 countries that presented major reforms this year and showed important advances in categories that are critical in the development of new businesses.”
On a regional basis, Nicaragua outranked the other Central American countries in the categories of Protecting Investors, Enforcing Contracts and Resolving Insolvency. This is considered an important result since these factors cover a project from inception to completion. To further improve performance, officials of the Nicaraguan government are working with the World Bank to develop and implement additional initiatives.
European Investment Promoted In Nicaragua
Representatives from over 40 European companies visited Nicaragua during a special summit in October, sponsored by PRONicaragua, the country’s official investment promotion agency. The objective was to highlight Nicaragua’s upward-trending economic performance and positive investment climate, while also showcasing current investment opportunities. Sectors focused on included manufacturing, apparel, footwear, tourism, energy, and infrastructure.
The European Union is perceived as offering substantial potential for additional investment, with member countries currently averaging $61 million USD from 2007 to 2010. This represents just 13% of Nicaragua’s current foreign direct investment (FDI). However, there was over a 40% increase in exports from Nicaragua to European Union members in 2010, compared to 2007, which indicates greater interest in Nicaragua by member countries.
What Does This Say About The New Nicaragua?
The glowing reports continue, which is calling the world’s attention to Nicaragua by both international investors and savvy individuals seeking promising opportunities. According to Kevin Fleming, chairman of Grupo Mariana, he discovered during his recent tour of numerous North American cities that more and more people have Nicaragua on their lists when considering potential places to invest, whether for vacation and retirement living, or even starting a new business. “It’s very exciting to hear the questions people have about Nicaragua,” Fleming reports. “It’s also very encouraging to hear the interest in visiting the country and experiencing first-hand all the elements that make this a wonderful place to invest, live and work.”
An ideal way to explore Nicaragua is through one of Grupo Mariana’s Discovery Tours. The next tour is scheduled for January 25-29, 2012. For complete details, click here.