Nicaragua increases foreign direct investment in the first half of 2024
The Central Bank of Nicaragua reported that the country attracted USD 1.59 billion in Foreign Direct Investment (FDI) during the first half of 2024, an 11.3% increase compared to the same period last year, when FDI reached USD 1.43 billion.
During this period, FDI accounted for 16.9% of Nicaragua’s Gross Domestic Product (GDP), slightly below the 17.1% recorded in the first half of 2023. Net FDI flows, amounting to USD 810.3 million, represented 8.6% of GDP, marking a 2% decrease from the previous year.
The report highlights that the main source of FDI was external disbursements received from parent companies and non-resident enterprises, totaling USD 807.2 million, or 50.8% of the total. Additionally, profits generated during the period reached USD 543.4 million (34.2%), while new capital contributions amounted to USD 238 million (15%).
In terms of origin, Panama is the leading investor in Nicaragua, with net flows of USD 179.3 million, concentrated in the financial, industrial, and energy sectors. The United States follows with USD 170.8 million, mainly directed toward industry, energy, and trade. Other notable countries include Spain with USD 71.7 million, and Mexico with USD 42.8 million.
By sector, industry emerged as the primary recipient of net FDI flows, totaling USD 356.7 million, followed by the financial sector (USD 127.9 million) and the energy and mining sector (USD 125.1 million).
The Central Bank of Nicaragua projects an economic growth rate of between 3.5% and 4.5% for 2024, along with an estimated annual inflation rate of between 3.5% and 4.5%. This information underscores the growing confidence in the country’s investment climate and its ability to attract foreign capital across various economic sectors.
Carlos Téllez
carlos.tellez@garciabodan.com
Managing Partner
García & Bodán
Nicaragua