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Foreign direct investment in Querétaro has become one of the most attractive options in the country for international manufacturers. Its strategic location, rule of law, quality of life, and stable labor environment are the main characteristics that distinguish it from its competitors.

This 2023, Querétaro started with 55 projects in its investment portfolio that will eventually generate about 23,894 jobs and represent an investment of approximately US $5.2 billion.

According to Marco Antonio del Prete Tercero, Secretary of Sustainable Development of the State, for foreign direct investment in Querétaro, “the first things that we offer include a safe environment characterized by the rule of law, a superior quality of life, and economic competitiveness.”

Querétaro keeps its promises

“A state that fulfills what it offers and promises” distinguishes Querétaro from others. It delivers security, education, competitiveness, and health. These are things that are critical to promoting foreign direct investment in Querétaro.

Efforts to attract investment are oriented towards training support, job creation, and infrastructure development, which represent a stimulus for the companies to decide to establish operations in Querétaro.

In direct foreign investment in Querétaro, from January to September 2022, the state attracted US $764 million. This is an increase in the growth rate of almost 11% annually, with the United States being the leading investor. The countries that followed the US were France, Canada, and Japan. Of the total, nearly 60% of the foreign direct investment corresponds to reinvestments, which indicates that companies based in the state continue to bet on developing their projects, he maintained.

According to data from the Secretariat of Sustainable Development (Sedesu), in 2022, 47 projects were completed and, in the medium term, will generate 13,996 jobs. They represent a foreign direct investment in Querétaro of USD 1.4 billion.

As part of this investment attraction strategy, proactive promotion is essential. Therefore, the state participates in foreign tours, trade fairs, and commercial exhibitions in Canada, Germany, the United States, and the United Kingdom.

Foreign direct investment in Querétaro requires a solid infrastructure

Infrastructure also plays a vital role in attracting foreign direct investment in Querétaro since “competitiveness is also measured in shorter times, greater vehicular flow accesses so that people and merchandise move efficiently and safely.”

And not only roads but also energy, water, and education are also important. “Everything is based on a developed infrastructure.”

Regarding industrial and business activity, Del Prete highlighted the network of clusters that the state has, which simultaneously form part of its economic growth strategy. For example, Querétaro’s primary industries include information technologies, aerospace, automotive, plastics, energy, logistics, and medical devices.

Regarding connectivity, he highlighted the Querétaro International Airport (AIQ), where the leading national airlines such as Aeroméxico, Volaris, Viva Aerobús, TAR, and international airlines such as United Airlines are present. In the same way, it has become a logistics hub in terms of cargo, mobilizing about 72,000 tons of cargo in 2022, nationally and internationally. In addition, firms such as DHL, UPS, FedEx, and Mercado Libre have a presence in Querétaro.

Mercado Libre has its air hub in the entity, which represents an investment of US $55 million, which was made in 2020.

Querétaro strives to attract advanced manufacturing companies with significant innovation and technology to add value to the economy in sectors such as data centers, industry 4.0 technologies, and the metaverse.

In recent years there has been a boom in data centers with foreign direct investment in Querétaro.  This makes it the state with the most megawatts installed in Mexico (48 MW). Companies such as Ascenty, Kio, Alestra, Equinix, Digital Reality, Odata, Triara, CloudHQ, and Huawei have a presence there.

Investors can have tremendous confidence in the state. For example, international rating agencies such as Standard and Poor’s and Moody’s give it the highest rating with an investment grade (BBB for a long-term issuer on a global scale and mxAA + on a national scale, both with stable prospects, by S&P and Baa2 with Moody’s stable outlook).

Querétaro has positioned itself internationally among the Latin American cities of the future. According to fDi Intelligence, it is the second most desirable destination for companies to invest in Mexico.  According to KPMG it is the fourth state with the best performance and competitiveness at the national level.  It also is recognized as being in fourth place for the most sustainable societies, by the Center for Economic Research and Teaching (CIDE).

Companies can draw on a growing population

Today, Querétaro has 2,368,000 inhabitants and is positioned as the Mexican entity with the second-highest growth rate in its population compared to 2010. “In 30 years, the population doubled, an important fact that has allowed us to continue growing and developing the economy,” Del Prete said. From 2010 to 2020, there was a growth of 2.7% in the number of inhabitants, the exact figure registered from 2000 to 2010.

The average age of the population of the state is 28 years. Therefore, Querétaro offers companies a young population that is essential for their growth and success. This makes the state attractive to invest in since it has a large and growing economically active population (EAP).

The EAP of Querétaro is numbered at 1,041,000 people. Although its unemployment rate is 5% on average, it is also one of the states with a high percentage of its economically active population formally employed, with 63 percent.

To deal with the unemployment rate, he commented, there are strategies in conjunction with other secretariats, such as Labor and Education, as well as with industry clusters to determine a common core of knowledge required for the state to prepare workers for jobs in industry.

Manufacturing is the sector that generates the most significant number of jobs, followed by services, commerce, and construction. As regards the latter, Querétaro is one of the preferred destinations for real estate investment in housing construction, industrial parks, and public works.

Technological advances have allowed the optimization of finances. As a result, Panama knows a new, faster, and more efficient way to manage the banking services of its users. In addition, progress is being made in the fintech sector in Panama.

Financial companies and their new relationship with technology have allowed an immense transformation and generated change forever. Some companies have opted for the new modus operandi known as fintech to manage their services and expand them throughout the country. This new sector, which is proliferating, uses technology to improve and automate financial services and processes, simplify processes without intermediaries, and offer better solutions to people through new technologies.

Fintech Presence in Latin America

In April 2022, the Inter-American Development Bank (IDB) pointed out in its third edition of the ‘Fintech Report in Latin America and the Caribbean’ that the Latin American region increased from 2018 to the end of 2021 from 1,166 fintech ventures to 2,482. This represented an increase of 112% and comprised 22.6% of fintechs worldwide.

So far,  the fintech sector in Panama barely reaches 1% with 16 ventures, but, according to the CEO of Cuanto, Felipe Echandi, Panama has the opportunity to continue growing in the financial sector as long as there are “more incentives for the country to be a digital economy hub.” The country has proposals that will help the development of the fintech sector in Panama and the technological improvements that provide ease and speed, whether in the banking sector or others. PayCaddy, for example, offers specialized services to digitize banking and create tailored fintech solutions, and Munily, which digitizes services and payments in residential communities. The Nequi and Visa banking platforms have also allowed contactless payments, among other services.

Speed and agility in the fintech sector in Panama

In a conversation with the newspaper La Estrella de Panamá, the regional leader of Visa Products for the Caribbean and Central America, Allen Cueli, expressed the importance that new technologies such as fintech bring to the country. “It’s all about becoming faster and more agile without intermediaries.”

Cueli has been one of the pioneers in the new “contactless” technology in countries like Mexico and Costa Rica, and now in the fintech sector in Panama.“

Today, 73% of purchases made in the country with a Visa card are contactless. In Central America and the Caribbean, we have 11 markets with more than 50% making payments this way,” he told the newspaper.

“This allowed us to build trust in people who were afraid to touch the payment machines during the pandemic due to the coronavirus contagion.”

Raúl Romero, director of Nequi in Panama, spoke with the newspaper about the importance of fintech in the country and its speed. “We must provide 100% digital solutions. This will allow our users to manage their money at no additional cost in less than 5 minutes.”

Nequi users are between 18 and 35 years. They are millennials who have independence and want to have access to the world autonomously,” he explained. “Surely the user has a first job and a partner with whom they are building wealth, family, travel and more, and are curious to access new things.”

Romero explained that although Nequi users have a specific profile, it is a platform open to everyone who wants financial security quickly, regardless of age.

He added, “We started with a base of zero clients, and today we have almost 200,000 where those people use Nequi because they believe, within those capacities, that they will be able to find better ways to use their money.”

Platforms like this allow the payment of invoices, surcharges, transfers, and more in a single click. “This greatly changes the features of a traditional bank where the procedures can be long and drawn out.”

The director of Nequi added that new technologies allow greater security and speed. “Now everything is linked to our phone, whether it’s a password, fingerprint, or a face ID. This means that only the user can access their accounts. In addition, as the phone changes, the platform will request a new link, forgetting about the previous device.”

New challenges

Allen Cueli understands that the fintech sector in  Panama has several challenges to overcome to continue growing. “Financial inclusion in Panama is essential. But, unfortunately, some people do not have a digital credential to interact with this economy, and something must be done about it,” he told the newspaper.

What we have understood in recent years is that Panama has a high acceptance of new technologies, mainly because of the speed they generate. But you must keep moving forward and reach other people around the country so they understand the importance of fintech.”

In addition, he commented on the plans he expects for Visa and its users in the coming years: “I would like to improve the user experience by providing greater financial inclusion. What I expect in five years is more user participation, more digital experiences, and more payment options,” he said. “I would like to offer the option to send and receive payments. All this has that effect that helps drive and stimulate greater inclusion and improvements among them.

Raúl Romero added that another significant challenge for the fintech sector in Panama is to continue generating trust in people, especially new users. “They should know that they are – the person and their money – in total security, and we work on that daily.”

He also commented that providing solutions in the different banking categories is crucial and that the public is ready to accept them.

However, the director of Nequi admits that Panama may be heading towards being a 100% cashless country. “Panama is a melting pot and brings knowledge from all over the world with super important ethnic and cultural groups for the country, which give you the ability to fluidly digital interactions.”

What economic prospects for Guatemala are there for the rest2023? Will the world fall into recession, and how would Guatemala be affected? Is the country resilient? At the moment, the world situation is uncertain. Several economic experts attest that we are already in a general recession. Others say that we will enter one early next year. Yet, still, others tell us that there will not be a recession as such, just a general economic shock.

Economic prospects for Guatemala and the rest of the region project moderate GDP growth

In the economic sphere, the International Monetary Fund (IMF) forecasts that the economic prospects for  Guatemala will have a GDP growth rate of 3.2% in 2023. This figure 1.8% less than optimal for an appropriate growth rate for a developing nation. Similar rates are expected to be attained by other countries in the region. This includes Costa Rica at 2.9%, the Dominican Republic at 4.5%, El Salvador at 1.7%, Honduras at 3.5%, and Nicaragua at 3%. This decline in economic activity will cause various crises and disruptions to be experienced this year that will slow down the economy. Nevertheless, it is expected that if the countries adopt the correct policies, they will be able to exceed these numbers and achieve optimal growth that will result in positive economic prospects for Guatemala and the region as a whole.

Concerning the inflationary crisis that is currently being experienced in many countries, some experts expect prices to begin to stabilize at the beginning of the next year. It is anticipated, however, that rates will not return to the low level that many countries’ economies have enjoyed in recent years. The IMF forecasts that in 2023 Guatemala will end with an inflation of 5.6%. In October 2021, this number was expected to be 4.2%, but given the current situation, it increased. Other regional inflation rate forecasts include Costa Rica at 6.4%, the Dominican Republic at 5.7%, El Salvador at 2.7%, Honduras at 8.5%, and Nicaragua at 7%. The Bank of Guatemala (BANGUAT) is expected to achieve anchor inflation expectations in 2023 when it begins to see a significant drop, reducing national uncertainty and improving economic conditions. This is critical for bettering economic prospects for Guatemala and attracting investment and international business.

A slowdown in trade

For trade, a slowdown is expected this year. For Guatemala, the IMF forecasts a 5.9% growth in exports, lower than the 6.1% that was previously expected. However, exports are expected to grow positively for the region as a whole. Most noteworthy is that the Dominican Republic has the highest expected growth at 9.4%.

Concerning imports, general growth is expected in the region with figures of around 1% and 6%. The IMF expects the economic prospects for Guatemala to grow its imports by 1.3%. This figure is lower than countries like Costa Rica, the Dominican Republic, and Honduras, which are all expected to be above 4.3%.

The Foreign Direct Investment (FDI) goal that is expected for Guatemala in 2023 is US $1.7 billion. Will the country be able to exceed the investment goal? It is believed that the answer to this question is “yes.” The efforts of the Ministry of Economy (MINECO) and the private sector will be the key to attracting more and better investment to the country. Guatemala seeks to diversify its investment sectors by taking advantage of the nearshoring and friendshoring opportunities offered through economic cooperation with the United States. Programs such as Guatemala no Se Detiene, or “Guatemala Does Not Stop,” are essential to attracting foreign direct investment.

The Bank of Guatemala has been known for responsible monetary policy

Economic prospects for Guatemala predict that a drop and stabilization of the country’s exchange rate is also expected. This will be possible if BANGUAT maintains the responsible monetary policy for which it has recently been known.

Economic prospects for Guatemala must continue on the right path. This can be assured by promoting initiatives that attract and create investment and employment, which leads to greater industrialization. It is proven that the Guatemalan industry is the one that pays regionally competitive salaries. Therefore, by investing in it, more and better jobs are generated. Consequently, the quality of life of the Guatemalan citizenry improves. The development process is, at times, slow, but, on the whole, economic prospects for Guatemala remain positive. The country is expected to improve its economic conditions in 2023, especially in an important election year.

Digital transformation has become, especially in the last two years, one of the most critical issues in Colombia and the world. This is how the National Association of Businessmen of Colombia ( Andi ) sees the situation when it points out that only 25 percent of Colombian business organizations had digital transformation strategies before the coronavirus pandemic. As a result of the health emergency, however, that figure has recently grown to 60 percent. Consequently, the BPO industry in Colombia is expanding.

According to another report presented at the end of 2021 by Salesforce, today, the interaction of users and customers with business firms is 70 percent digital, while two years ago, it represented 40 percent. Added to this panorama is that Colombia has one of the highest Internet uses in Latin America. According to ProColombia, the country’s citizens spend about ten hours a day per capita.

These are sufficient reasons for various sectors to take advantage of the moment. Business process outsourcing is now one of the main drivers of the economy. Today it contributes 2.8 percent to the national GDP. The BPO industry in Colombia currently employs more than 655,000 people.

According to Ana Karina Quessep Alcove, executive president of the Colombian BPO Association, this industry invested around 2,000 million pesos per month in technology and employee training to manage each digital transformation process. In addition, they consider that a large part of its clients is comprised of the banking and financial services sectors, with a 28 percent share. Beyond this, the telecommunications industry is second with 35 percent. While public services follow with 13 percent, and the health sector comes in fourth place with 10 percent.

The BPO industry in Colombia in figures

The BPO sector, dedicated to outsourcing business processes or contracting commercial activities and functions with external providers, created more than 20,000 jobs during the pandemic. Of these positions, 45 percent were attached to call centers.

Based on figures from the Association, the BPO industry in Colombia, which last year achieved sales of 12 billion Colombian pesos and exports of 1.5 billion dollars, has more than 600 companies in the country. Sixty-five percent of these firms are domestic, while 35 percent are multinationals or “multilatinas.”

For those familiar with the sector, such representativeness in the market requires a robust infrastructure that must be leveraged and replete with technological innovation and digital tools. “Artificial intelligence” (AI) is a vital tool for the industry because it has adapted to digital transformation amid the fourth industrial revolution. These elements are chatbots, new channels that are easy for customers to access (such as WhatsApp), and voice for personalized attention, speech recognition, which personalizes and streamlines the service to the user. In addition to this, it helps the development of proprietary technologies to facilitate all processes supported in the cloud”, adds Quessep Alcove.

More intuitive companies

According to Unisono, a company in the BPO industry in Colombia, one of the significant challenges will be to keep in full evolution to generate connections with clients and create positive user experiences. “Omnichannel, social networks, video assistance, and robotization are other trends in high demand by consumers and digital users. As a result, these services are becoming differentiating elements to improve the customer experience,” said the company’s top executives.

These tools facilitate administrative tasks to provide a superior service to the new digital consumer. These customers have increasingly come to expect immediacy and simplicity in the process. The truth is that care in the BPO industry in Colombia (BPro) has improved with almost immediate information 24 hours a day, seven days a week.

During the Experience Summit, organized by the BPO Association of Colombia, industry leaders in Colombia made it clear that digital platforms, smartphones, constant connectivity, and a robust interface oriented towards the consumer experience will always be essential. “Technology is required to help companies become more intuitive, anticipate what a customer wants, get to know him, and satisfy his real needs.”

Colombia is strong in the industry

“Many multinationals would like to establish operations in the BPO industry in Colombia. This is because the country offers excellent competitive advantages. Among these are:

• The availability and quality of labor in the main cities.
• A modern infrastructure of five submarine cables and a 550 Gbps connection.
• Competitive prices and strategic location geography, since Colombia is in the middle of five time zones.
• Legal stability.

Likewise, it has diversified location offerings in Bogotá and the departments of Atlántico, Bolívar, Antioquia, Risaralda, Quindío, Caldas, Valle del Cauca, and Santander, among others,” according to Flavia Santoro, president of ProColombia.

The Ministry of Economy (MINEC) has made 100% digitized services available to encourage investments in El Salvador.

On Thursday, March 30, 2023, the Salvadoran Ministry of Economy launched the Procedures Streamlining System. This system is administered by  MINEC’s Investment Directorate and is expected to facilitate the flow of investments in El Salvador.

The Minister of Economy, María Luisa Hayem, noted that the Ministry of Economy has succeeded in reducing the investment paperwork process from 31 to 10 procedures on this platform. In addition, the new digital window is available to investors 24 hours a day and can be accessed anywhere in the world.

“Response time to initiate investments in El Salvador has been reduced by 25%, and 100% of the services for our clients have been digitized, specifically for local and international companies, once again protected under our free zone regimes and international services law”, Hayem explained during his launch.

The official commented that past bureaucratic processes disincentivized new investment projects and greater job creation.

System enabled

The Director of Investments, Clarissa Valdebrán, assured that the website “www.inversionista.economia.gob.sv” will be available starting March 31, 2023, for interested investors. Registering an email and a password will only be necessary to enter.

Within the website, entrepreneurs can modify their profiles, verify the documents they share through the platform, and carry out procedures related to audits, attorneys, shareholders, and paperwork.

Users of the system to promote investments in El Salvador will be able to carry out procedures for the qualification and granting of benefits for users of the free zone regime, production and commercialization or deposit, as well as the registration of national and foreign capital. They will also be able to carry out and administer the modification of lists of tariff items.

The director also explained that once each procedure has been completed, an agreement or resolution will be shared by email with the certified electronic signature of the Minister of Economy, which, she stressed, will guarantee the document.

Valdebrán confirmed that companies have already tested this system to encourage investments in El Salvador. She also indicated that the new system’s management training would begin in April.

More investments in El Salvador

The minister hopes that this tool will increase investments in El Salvador, although she clarified that this would most likely take some time. The management of MINEC assured that it works with companies interested in expanding operations in the country and others that are evaluating an entrance into the Salvadoran market.

According to the Salvadoran Central Reserve Bank (BCR), private investment increased by $757.1 million (14.7%) at the end of 2022.

Hayem indicated that the certified electronic signature is being promoted and that finance and technology are the most active sectors in its adoption.

The new window is the result of a national project to facilitate procedures. It results from the agreements reached with 13 institutions with which MINEC will cooperate.

What is on the new MINEC platform to promote investments in El Salvador

Director Valdebrán explained that both natural and legal persons can enter the platform. The processes carried out will include the certified electronic signature of the Minister of Economy.

1.- The profile option

Entrepreneurs may have access to verify their user data and update them. However, the Investment Directorate assured that the regime by which they are covered or wish to engage with must be identified.

2.- Access to documents

The MINEC platform offers the “Documents” option, described by the institution as “a virtual library,” where all the files attached to the stored applications are registered.

3.- Access to audit

During the presentation, Valdebrán assured that this module is important because it allows compliance with the obligations of free zones and international services to present operation reports.

4.- The attorneys

The platform requests to place all necessary information corresponding to the company’s attorney(s). The information is stored in the system and can be used in other procedures.

5.- Add shareholders

Those who access the system can add and access the information of each company’s shareholders who invest in El Salvador. The module represents part of compliance with the Free Zones Law and the International Services Law.

What benefits does MINEC’s platform offer parties seeking to invest in El Salvador?

The new platform implemented by the Salvadoran Ministry of Economy will facilitate investments in the country  by offering users a tool that:

Saves time and money: Streamlining regulatory processes and reducing bureaucratic procedures can save time and money for foreign investors. It allows them to focus on their core business operations rather than being tied up in administrative tasks.

Increases transparency: Simplifying regulations and procedures can increase transparency and predictability, which can help investors understand the risks and rewards associated with investing in a foreign country.

Enhances competitiveness: By reducing red tape, countries can improve their competitiveness and attractiveness to foreign investors. This can lead to increased investment, job creation, and economic growth.

Improves ease of doing business: Reducing red tape can enhance the ease of doing business in a country, attracting more foreign investors. A favorable business environment can encourage companies to invest and expand their operations.

Improves investor confidence: Simplifying regulations and procedures can enhance investor confidence in a country’s business environment. This can encourage investors to invest in the long term and can lead to increased economic growth.