The report of the United Nations agency confirms that El Salvador was the Central American country with the least foreign investment in 2023.
El Salvador received0.4 % of foreign direct investment (FDI) which was captured by Latin America and the Caribbean at the end of 2023, revealed the Economic Commission for Latin America and the Caribbean (ECLAC).
The annual FDI report, which collects official information, reveals that foreign investment in Latin America and the Caribbean suffered a sharp fall of $20.362 million in 2023 after closing with a flow of $184,304 million, equivalent to 9.9 per cent less than 2022.
Of these, El Salvador generated$760 million.Although its contribution in the region is minuscule, the report recalls that foreign capital inflows grew $589 million (344,7 percent) compared to $171 million reported in 2022. In addition, it was the largest amount in five years, since the $826 million recorded in 2018.
The United Nations agency reports that the services sector received 87 per cent of FDI inflows, while 13 per cent went to manufacturing. Revenues in both items increased 621 per cent and 143 per cent, respectively, compared with 2022.
“In terms of announcements of investment projects, El Salvador recorded a fall of more than half (53 per cent) in the amount accumulated in 2022, and totaled $218 million in 2023. However, the telecommunications sector, without announcements of associated projects in 2022, had a remarkable contribution of $150 million in 2023,” the report says.
Cepal said the value is attributed to the construction of a bitcoin mining announced by Tether, companies based in the British Virgin Islands and specializing in the cryptocurrency and blockchain technology sectors.
According to the report, Central America received more than $11,642 million in foreign capital, equivalent to an additional $1.246 million to 2022, a 12 percent growth rate. These capitals together account for 6.3 per cent of all FDI received by Latin America and the Caribbean.
Without taking off from the last position
Again, El Salvador stayed like thedestination that received less foreign investmentin Central America, even when there was a drop in income in Panama and Nicaragua.
The report notes that Costa Rica is the main destination for foreign investors, with more than $4.687 million received at the end of 2023 and with a growth of $1,014 million (27.6 per cent).
Although Panama suffered a sharp drop of $670 million (22.4 percent), it received $2.327 million and was the second investment destination in the isthmus.
Guatemala received $1,552 million, at least $110 million (7.6 percent) additional to 2022, while Nicaragua raised $1.23 billion, a figure that decreased by $64 million (4.9 percent).
The fifth destination for the IED was Honduras, with $1,085 million. That figure increased $267 million (32.6 percent) from 2022.
The Cepal report highlights that El Salvador was placed last year as the main origin of mergers and acquisitions in the region – thanks to the purchase of the shares of Storage Success by the Salvadoran conglomerate Calleja, owner of Super Selectos.
Calleja concretized the main acquisition reported by Translatein companies in 2023, valued at $1,170 million, after the purchase of 86.51 percent of the share capital of Success.
If all acquisitions – of Latin American capital as a foreigner – are included, Calleja carried out the sixth most important operation on the market.
This article has been translated after first appearing in Diario El Mundo