ECLAC report highlights that in 2021 Guyana concentrated 50% and DR 35%, services and natural resources are the sectors with the most inputs.
Foreign direct investment (FDI) flows to the Dominican Republic increased 21% in 2021, totaling US$3,102 million, the highest level since 2017, according to a recent ECLAC report.
However, last year, Guyana was the Caribbean country with the highest growth in amount, surpassing Quisqueya, which in previous years, had led the reception of investments in the subregion.
In 2021, FDI flows in the Caribbean amounted to US$ 8,957 million, a figure 19.4% higher than that registered in 2020, which corresponds mainly to capital inflows in Guyana’s hydrocarbons sector and the increase in FDI to the Dominican Republic, highlighted in the report” Foreign Direct Investment in Latin America and the Caribbean”, released by the Economic Commission for Latin America and the Caribbean (ECLAC).
The document highlights that Guyana is positioned for the first time as the main destination for FDI in the subregion, concentrating 50% of inflows, followed by the Dominican Republic with 35%.
Inflow of Direct Foreign Investment per country in US$ millions
Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on official figures and estimates as of 21 Sept.2022.
“Ct our for tourism, Caribbean economies were strongly affected by the COVID-19 crisis, but they have already reached levels of foreign investment 24% higher than those in 2019”, ECLAC states.
It points out that, while investment in tourism and the hotel sector has begun to rebound in the Dominican Republic, other countries, such as Jamaica and Barbados, have shown their potential in the business process outsourcing sector, attracting investment from the companies in that sector.
Dominican Republic Recovers
The growth shown by the Dominican Republic “has led to a recovery with respect to the fall of 2020 and values above the average of the last ten years have been reached”, ECLAC highlights.
The report indicates that this growth is mainly due to higher inflows into the services and natural resources sectors, while inflows into manufacturing were reduced, when less investment was received than in 2020 (-25%), which represented 11% of total revenues.
Services received 8% more FDI than in 2020 and accounted for 74% of total inflows.
The trade, hotels and restaurants sectors stand out, which alone concentrated 40% of entries in the country, with an amount 5% higher than the previous year, resuming levels close to those reached before the pandemic. In addition, there were announcements of new investments in the sector.
Construction also stands out (with an increase of 9.7% compared to 2020) and the transport and communications sector shows a recovery after registering a negative value in 2020.
As for the origin of capital, the USA continues to be the Dominican Republic’s main source of FDI.
The Caribbean (selected countries): Foreign Direct Investment received 2020 and 2021 in US$ million
Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on official figures and estimates as of 21 Sept.2022.
Source:
Diario Libre
