The Central American region is ideal for investment and start up of companies due to its fertile ground for investment. Isthmus economies are going through a period of steady and substantial growth making them ideal to start new businesses. Each country has incentives that the authorities are working to highlight wordwide.
Invest in Guatemala, government entity that provides direct support to foreign investors, says that the country offers advantages that have enabled the company to achieve high returns for their investment. Guatemala has the best business climate of DR-CAFTA area ranks first in Central America and is among the top ten in Latin America. Invest in Guatemala is promoting investment in nine sectors: industry, food, light manufacturing, garment and textile, tourism, energy and oil, mining and forestry infrastructure.
Here are some advantages of investing in Guatemala:
- Prime Location: Proximity to Mexico and Central America makes trade bridge; It is a logistics and regional services center due to its proximity to the US and access to the Atlantic and Pacific oceans;
- Human resources quality: workforce consists of more than 6.2 million people of which more than 550,000 people has higher education degree and has a larger student population of CA
- Foreign trade: exports to more than 140 markets worldwide, is the leading exporter of electric energy to Central America.
- Excellent indicators: Macroeconomics has been stable, inflation has remained within the established goals and for more than a decade the exchange rate shows a stable behavior.
- Legal framework promotes foreign investment: a competitive legal framework led to the signing of free trade agreements and preferential agreements.
In El Salvador, the economy is on the path of transformation. The Salvadoran labor remains attractive for its industry, also has improved the supply of young workers who have a second language.
According to official sources it is determined that the country's economic growth will remain moderate, but will gradually increase to the extent that the global economy recovers and the result indicates that the main challenge is to achieve greater investment in human capital to improve quality and skills of the workforce.
Some of the tips to invest in El Salvador:
- Investing in activities requiring labor force
- Invest in activities that require first class services and complement
- Harnessing financial facilities provided by the financial system
- Visit the investment promotion agency
In Honduras the workforce is young, the labor costs are low and there is availability of professionals including trained in local, bilingual and graduates of technical universities institutions. The Honduran economy has been fulfilling a macroeconomic stabilization plan fulfilling the goals contained in the agreement with the International Monetary Fund. Economic growth in the order of 3.5% is expected, a fiscal deficit of less than 4% of GDP controlled in marked improvement in the sovereign risk rating and positive outlook developing large projects to improve logistics infrastructure, educational reform, health and social protection systems.
Some of the advantages of investing in Honduras are the following:
- Logistics infrastructure and broadband connectivity
- Wide young workforce, bilingual
- Levels of labor productivity in industry and maquila
- It has strong and comprehensive legislation for management incentives
- It is one of the most open economies in the world
- The financial system is private, meeting the highest standards of soundness, liquidity and solvency.
Regarding Nicaragua, the economy has grown at rates near 4.8% per year in real terms during past three years.
Since 2000, tax reforms have operated four times: one for broadening the tax base, two for improving fiscal equity and other tax concentration among major economic players and government.
Nicaragua has a large workforce and great potential to be skilled and trained.
In part agricultural areas are growing grown each year, is preparing more land, are investing heavily in equipment and infrastructure to grow increasingly. Operations in rice and fruit trees and a frozen food plant is what is reversing. They are also investing in hotels, the Hyatt Hotel is under construction in front of Galerias Santo Domingo, and is also investing in power since the country has a lot of water to take as a renewable energy source.
As for Costa Rica, 2015 was characterized by the growth of product manufacturing and farming, banana, pineapple, melon and coffee economy.
Costa Rica's commitment to economic growth and social development has boosted its economy towards diversification, creating strong sectors in advanced manufacturing, medical devices, services and tourism. Today, Costa Rica exports have diversified into thousands of different products exported throughout the world and the country is highly recognized as one of the 30 leading exporters of high technology and one of the best destinations for investment and Tourism in Latin America.
Political and economic stability makes it ideal to invest and re capitalize the money.
Some of the tips to invest in Costa Rica are:
- Long-term investment
- Investing in data management
- Caring exchange exposure and interest rates
In Panama the construction sector occupies the largest growth to generate jobs and financial profitability. The main investment opportunities are around businesses that are under way as the Canal expansion, improvements in road, port and airport infrastructure projects and also in renewable energy sources.
The project completion of Panama Canal expansion project would enhance maritime cluster related businesses such as ports, storage and sale of fuel, sale of goods and services to ships, construction and maintenance of infrastructure, machinery and marine equipment again which will bring with it the registration of vessels.
The lack of housing for a growing country where many people are nationals or foreigners found a niche investment opportunities, build buildings in the center of the capital and in the suburbs.
Central America is a geographically privileged region which is near to the ports of the most important cities in the world which facilitates global trade. Central America is full of investment opportunities and framed in appropriate legal standards that protect and encourage investors, the signature of Treaties and Free Trade Agreements with the United States and Europe, whilst a proper legislation to arbitrate disputes arising from these treaties and / or agreements which makes it more attractive for investors.
For more information on the regulatory framework for investments in Central America, we invite you to consult the guide to Doing Business that CENTRAL LAW has prepared for you in www.central.law.com