Presentación de PowerPoint - PRONicaraguapronicaragua.gob.ni/media/publications/Country... ·...

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NICARAGUA OVERVIEW 2019

Transcript of Presentación de PowerPoint - PRONicaraguapronicaragua.gob.ni/media/publications/Country... ·...

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NICARAGUAOVERVIEW

2019

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CONTENTS

1. General information

2. Foreign Direct Investment

4. Human capitaland quality of life

3.Logistics and infrastructure

5. Investmentopportunities

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1. GENERALINFORMATION

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COUNTRY PROFILE

Source: BCN. (*Average 2019).

Official languageSpanish

Population6.4 million

CurrencyCordoba (C$)

Official exchange rate*C$33.13 = US$1.00

Standard time zoneUTC/GMT -6 horas

Territorial extension130,373 km2

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MACROECONOMIC DATA

GDP

US$13.12

billion

(-3.8% growth vs.

2017)

GDP per capita

US$2,030.5

Exports

US$5.39 billion

FDI inflows

US$1.06 billion

Gross international

reserves

US$2.26 billion

Inflation

3.89%

Currency

devaluation

5% vs. US dollar

annually

Source: BCN, MIFIC and PRONicaragua (2018).

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#1 IN CENTRAL AMERICA

Lowest homicide rate

Lowest organized crime rate

Fewer procedures to open a business

Lower export costs

High-quality road network

Highest economic

growth rates over the last

7 years

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ECONOMIC GROWTH

8.29

8.75

9.77

10.53

10.98

11.88

12.76

13.29

13.84

13.12

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Nicaragua GDP (US$ billion)

Source: BCN and Projections CEPAL.

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Land65.7%

Air33.9%

Water0.4%

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TOURISM

Source: INTUR (2017). *Data 2018

US$544.4 million*in revenues (4% GDP)

1.95 milliontourists

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TRADE AGREEMENTS

Access to over +1.5 billion people in 45 countries

Source: MIFIC.

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2.62

3.43

4.304.82 4.79

5.19 4.91 4.835.18 5.39

31.6%

39.2%

44.0%45.8%

43.6% 43.7%

39.0%36.7% 37.5%

41.1%

0

1

2

3

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5

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Exports (US$ billion) As a % of GDP

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EXPORTS

Source: BCN and CNZF.

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MOST EXPORTED PRODUCTS

4.2%fish and shellfish

Source: BCN and CNZF (2018).

33.2%textiles and

apparel

10.3%automotive harnesses

7.8%coffee

8.9%beef

6.9%gold

4.8%cigars andtobacco

3.1%dairy

products

3.1%sugar

2.1%peanut

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2. FOREIGN DIRECT INVESTMENT

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0.43 0.50

0.93

1.241.35

1.45 1.38 1.43 1.51

1.06

5.2%5.8%

9.6%

11.8%12.3% 12.2%

11.0% 10.8% 10.6%

8.0%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FDI (US$ billion) As a % of GDPFore

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FDI INFLOWS

Source: BCN, MIFIC and PRONicaragua.

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Panama28.0%

Mexico18.2%

USA15.7%

Guatemala5.5%

Costa Rica4.9%

South Korea3.7%

Canada3.6%

Spain3.6%

Zwitzerland3.5%

Other13.3%

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SOURCE COUNTRIES AND INVESMENT SECTORS

39.2%industry

20.0%financial

20.0%trade and services

7.3%telecommunications

5.5%mining

Source: BCN, MIFIC and PRONicaragua 2018

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INVESTMENTINCENTIVES

Foreign Investment Promotion Law

(Law 344)

Tax Coalition Law (Law 822)

Temporary Admissions Law (Law 382)

Industrial Free Trade Zone Incentives Law

(Law 917)

Law to Promote Electricity Generation from Renewable Sources (Law 532)

Special Law on Exploration and Exploitationof Mines (Law 387)

Tourism Industry Incentives Law (Law 306)

Pensioners and Retirees Law (Decree 628)

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FOREIGN INVESTMENT FACILITATION

Free currency convertibility

Freedom to repatriate capital and profits

Equal treatment for national and

foreign investors

100% foreign investmentcapital

Full protection of property rights

Fixed currency devaluation against

the US$

Source: Foreign Investment Promotion Law.

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INVESTMENT INCENTIVES

*Valid for 10 years, with the possibility of extending once.

Temporary Admissions Law (Law 382)

REQUIREMENT:Export at least 25% of total sales, for a value of no less than US$50,000

EXEMPTION (PROPORTIONAL):Import taxes

Industrial Free Trade Zone Incentives Law(Law 917)

REQUIREMENT:₋ Export 100% of total sales

EXEMPTION (100%):₋ Income Tax (IR) *₋ Import taxes₋ Municipal taxes₋ Value Added Tax (VAT)₋ Capital gains₋ Property tax

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3. LOGISTICS AND INFRASTRUCTURE

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CONNECTIVITY

Source: Searates.

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PORTS AND ROADS

24,514.9 kmnational road

networkCentral Region

53%

Pacific Region

33%

Caribbean Region14%

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TELECOMMUNICATIONS COVERAGE

Source: CANITEL.

100%population with

access to cellular phone services

85%population with

access to mobile internet

1.3mobile phone lines

per capita

2.8 millionsmartphones countrywide

100%municipalities

with 3G internet coverage

42%4G LTE mobile

internet coverage

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64%

60%

29%

36%

40%

71%

1,942

1,482

819

0 500 1,000 1,500 2,000

2023 goal

2019

2007

Installed Capacity (MW)

Renewable energy Non renewable energyLogi

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ENERGY

95.9%of the national territory with electricity coverage

Source: MEM.

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FREE TRADE ZONES

+1.5 millonesm2 of industrial space in use

52Industrial parks

53%of the country’s total exports in 2018

+122,000jobs

187user companies

Source: CNZF (2018).

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4. HUMAN CAPITALAND QUALITY OF LIFE

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WORKFORCE

35 thousand new professionals in 2018

76.1% of the population under 40 years of age

3.2 millionpeople in the labor force2019

818 thousandformal employment (average 2018)

5.5%open unemployment 2018

44.2%underemployment2018

Source: INIDE, PRONicaragua and INSS.

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0.9

1.3

2.4

1.4

2.1

3.0

2.32.2

2.82.92.6

3.73.63.9

4.1

Agribusiness Free Zones Outsourcing

Nicaragua El Salvador Honduras Guatemala Costa RicaHu

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WAGE COMPETITIVENESS(US$ PER HOUR)

Source: PRONicaragua (2019).Note: Wages include fringe benefits

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SOCIAL DEVELOPMENT

Source: MHCP (2019) and INIDE (2017).

41.4%poverty alleviation since 2009 (currently at 24.9%)

52.7%extreme poverty alleviation since 2009 (currently at 6.9%)

56.2%of total Government expenditure in social investment

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5. INVESTMENTOPPORTUNITIES

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AGRIBUSINESS

Tropicalfruits

Agroexportation

Vegetables Roots and tubers

Plants and

flowers

Forestry

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INDUSTRY DATA

Coffee trading in over 40 markets worldwide

Acknowledged as fine andflavorcocoa producer by ICCO

Main cigarexporter in Central America

Largest producer of livestock and beef in Central America

Fifth largest exporter of shellfish to Europe in Latin America (#1 in Central America)

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LIGHT MANUFACTURING

Auto parts Textiles &

apparel

Footwear Medical devices

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INDUSTRY DATA

Main exporter of automotive harnessesin Central America (84.44.30)

Over 970,000 square meters of industrial space occupied by Free Trade Zone companies

Provider for brands such as FORD, GMC, BMW, VOLKSWAGEN, CHRYSLER

Main exporter of knitted fabrics in Central America (cotton)

46.3% of the country’s total exports in 2017

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OUTSOURCING

Knowledge Process Outsourcing (KPO)

Business Process Outsourcing (BPO)

Shared Services Centers (SSC)

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INDUSTRY DATA

Real-time services to the United States

Competitive and stable salaries (the call center’s basic salary has been stable for the past three years -US$550)

84% of the labor force offering services in English

An increasing number of destinations: United States, Costa Rica, Germany, Mexico, Netherlands, Canada, Argentina, Australia, United Kingdom

Increasing process complexity (finance, accounting, digital marketing, SSC)

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COMPANIES DOING BUSINESS

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SERVICES

Official Investment Promotion Agency of Nicaragua

ASSESSMENT AND DECISION-MAKING

Tailor-made information packages about the country

Comparative analyses and cost models

Arrangement upon request of visits in order to meet with key actors

ESTABLISHMENT

Provide contacts of goods and service suppliers

Support in finding real estate solutions

AFTER-CARE SERVICES

Guidance in permit procedures

Assistance in difficulties that require negotiations with State institutions

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