Running against the wind of all forecasts of instability with the recently-reinstated Sandinista government, foreign investment and exports continue apace. During the first year in office, there was $335 million in investment from abroad, according to the chief of the government investment promotion agency Javier Chamorro. That was 15.5% more than the year before. Projections are that the increase in that figure over 2008 will be around 18%, rounding the figure for fresh investment up to $400 million. As of first quarter 2008, some $60 million had been invested, mainly in free trade zones and the food processing industry.At the same time, because of the Central American Free Trade Agreement (CAFTA) that entered into effect in April 2006, exports from here to the United States rose by 35.5% over the last two years. That high percentage increase is due to the low nominal figure for exports to that country, which rose from only $243.4 million in 2005 to $328.3 million in 2007. The balance of trade improved since the rate of increase of imports did not match that of exports.
Overall exports from January to April this year totaled $570.1 million, 36.7% more than for the same period last year ($417.1 million). Projections are that the annual total for 2008 will be higher than last year’s three-decade record of $1,243.2 million.
Coffee leads, followed by beef. Some of the increase in foreign exchange earnings is due to higher international prices, not necessarily increases in production. But all in all, more positive news for business is on the horizon if present trends continue.