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Peace dividend

Monday, July 4, 2016


Investment in stable Central America may look good, compared to post-Brexit uncertainty, coupled with large-scale guerrilla violence in recent months in Istambul, Brussels and Paris.

Countries at risk of losing attractiveness include Bulgaria, Croatia, Czechia, Latvia and Poland, which have high levels of free-zone investment, according to the European Commission.

Free zone operations are easy to move, since they tend not to have fixed assets.

Meanwhile, investors may be attracted to stable social conditions in the region, especially in the southern tier.

Panama could attract interest in light manufacturing and logistics, following the opening last month of the expanded canal.

Costa Rica and Nicaragua between 2000 and 2014 saw significant increases in foreign investment, mainly in knowledge industries and apparel production, respectively.

Colombia for its part has recently shown strong economic growth – 6% last year over 2014 – as the peace process moves forward between the government and the main rebel groups.