Nicaragua’s FDI up 37.6% in 2023

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By LatAm Reports Editorial Team

Nicaragua raised $2,534.5 million in foreign direct investment last year, according to the central bank.

Nicaragua captured $2,534.5 million in Foreign Direct Investment (FDI) last year, 37.6 percent more than in 2022, the Central American Central Bank reported Thursday from Managua.

In cumulative terms, in 2023 gross FDI income totaled $2,534.5 million, resulting in an increase of 37.6 per cent ($691.9 million) over 2022 ($1,842.3 million), the state issuing bank said in a report.

The $2,53.5 million raised in FDI in 2023 represented 14.2 percent of gross domestic product (GDP), the monetary entity said.

In 2022, gross FDI income ($1,842.3 million) accounted for 11.8 percent of GDP, he said.

Meanwhile, net FDI flows accumulated $1,230.1 million (6.9 per cent of GDP), reflecting a decrease of 4.9 per cent from 2022 ($1,293,8 million, 836 per cent of GDP), according to the report.

The economic sectors with the highest net FDI flows were industry, energy and mines, trade and services, among others, the Central Bank said.

Nicaragua’s GDP increased by 4.6 percent compared to 2022, when Nicaragua’s economy grew by 3.8 percent, the third consecutive year of increase after three closing periods with a red balance, according to the monetary entity. In 2021, Nicaragua’s GDP grew by 10.3 per cent.

The Nicaraguan economy had contracted by an average of -3,0 % per year in the period 2018-2020.

By 2024, the Central Bank of Nicaragua estimates economic growth of between 3.5 % and 4.5 %.

This article has been translated from the original which first appeared in Diario El Mundo