Mexico is poised to achieve record-breaking figures, further solidifying its position as a global export powerhouse and strategic foreign direct investment (FDI) hub. In an era where nearshoring—the relocation of production lines closer to consumer markets—unlocks significant growth opportunities, Mexico as a global export and FDI hub continues to shine as a global economic force. The country ranks ninth as a worldwide exporter and twelfth by GDP.

According to Sergio Contreras Pérez, Executive President of the Mexican Business Council for Foreign Trade, Investment, and Technology (Comce), 2025 is expected to be another strong year for exports and FDI. This positive outlook is primarily due to Mexico’s reputation for quality manufacturing, which has become a hallmark of its industrial sector.

“The results we’ve achieved are no accident. Mexico has developed an industrial strategy centered on quality, making us a globally recognized manufacturing powerhouse,” said Contreras Pérez.

As a global export and FDI hub, Mexico is on track to achieve historic numbers in exports and foreign investment. Susana Duque, Director General of the Mexican Council of Foreign Trade, Investment, and Technology (Comce), highlighted that the country closed 2023 with a record $593 billion in exports, securing its position as the ninth-largest exporter in the world. Projections for 2024 suggest exports could reach an unprecedented $610–$620 billion.

“This growth reflects the strength of our value chains and our ability to compete in international markets. We are exporting quality, which we must continue to emphasize,” stated Contreras.

On the investment front, Duque revealed that Mexico attracted $35.7 billion in FDI during the first nine months of 2024—a remarkable 8.4% increase compared to the same period in 2023. By the end of the year, this figure is expected to climb to $38.4 billion.

“We are observing a positive trend in foreign investment, driven primarily by the trust in Mexico as a global export and FDI hub and as a destination for strategic and sustainable projects,” Duque noted.

The Role of Nearshoring and Strategic Sectors

The United States remains Mexico’s top source of FDI, accounting for 40% of total investments, followed by Japan (12.5%), Germany (10%), and Canada (7%).

Duque emphasized that the nearshoring phenomenon presents a unique opportunity for Mexico as a global export and FDI hub, leveraging its geographic proximity to North America and its integration into regional supply chains. This favorable context has made Mexico an attractive destination for advanced manufacturing, renewable energy, and digital technology sectors, drawing substantial investments.

“Mexico has positioned itself as a key player in global supply chains, and nearshoring is accelerating this trend. We are well-placed to meet the demand for high-quality goods and services,” she explained.

Opportunities and Challenges

Despite significant progress, Comce pointed to several areas where Mexico can capitalize on its advantages and further boost economic growth:

Linking FDI to Strategic Sectors

Mexico should prioritize industries such as electromobility, renewable energy, and digital technologies to establish itself as a regional leader in innovation and sustainability.

Improving Infrastructure and Connectivity

Modernizing logistics corridors, industrial parks, and the electrical grid will enable Mexico to respond more effectively to growing global and regional demand.

Diversifying Exports and Investment Sources

While the United States, Canada, and the European Union remain key markets, Mexico must expand its reach to Asia and emerging economies to reduce dependency and tap into new growth opportunities.

Enhancing Specialized Talent Development

Promoting education in STEM (science, technology, engineering, and mathematics) and investing in workforce training are essential to building a robust pool of skilled labor that meets industry demands.

Strengthening Inter-Institutional Coordination

Establishing mechanisms like the Advisory Council for Regional Economic Development and Relocation (CADERR) will facilitate greater collaboration among government entities, private businesses, and international stakeholders.

Building a Sustainable Future

Mexico’s commitment to quality, market diversification, and sustainability positions it as a formidable global leader in exports and FDI. The country has worked diligently over the past three decades to fortify its industries and create robust, efficient supply chains.

“Mexico is prepared to face global challenges and seize opportunities that drive economic growth. We have laid the groundwork for an industrial ecosystem that thrives on innovation, sustainability, and resilience,” Duque affirmed.

In addition to traditional industries like automotive and electronics, Mexico’s focus on emerging sectors further enhances its appeal to international investors. Initiatives to boost renewable energy adoption and foster the digital transformation of industries demonstrate Mexico as a global export and FDI hub and its forward-thinking approach.

Nearshoring as a Catalyst

Nearshoring is not just a trend but a transformative force for Mexico’s economy. Companies seeking to relocate production closer to North America choose Mexico for its competitive advantages, including its skilled labor force, proximity to the U.S. market, and participation in trade agreements like the USMCA.

This shift attracts foreign investors and creates opportunities for small and medium-sized enterprises (SMEs) to integrate into global supply chains. Mexican SMEs are increasingly becoming key suppliers for multinational corporations, further strengthening the country’s economic fabric.

A Vision for Long-Term Growth

As Mexico looks ahead, its ability to adapt to global trends and address challenges will be critical. By investing in infrastructure, fostering innovation, and cultivating a highly skilled workforce, the country can continue to build on its successes.

With its strategic geographic location, diverse industrial base, and commitment to sustainability, Mexico stands as a global export and FDI hub as a beacon of opportunity for international investors. By aligning its policies and resources with the demands of the modern economy, Mexico is charting a path toward sustainable and inclusive growth, ensuring its place as a leader on the global stage.

Conclusion

Mexico’s global export and FDI hub trajectory underscores its resilience and adaptability in an increasingly interconnected world. By leveraging its strategic location, robust industrial base, and commitment to sustainability, the country is well-positioned to seize emerging opportunities and navigate global challenges. With continued investments in infrastructure, innovation, and workforce development, Mexico can solidify its leadership on the global economic stage, fostering sustainable growth that benefits both domestic industries and international partners.

Foreign Investment in Bogotá surpassed $650 million by the third quarter of 2024, showcasing the city’s growing role as a hub for international business. The United States, with a share of 24.6%, emerged as the leading Foreign Direct Investment (FDI) source in Colombia’s capital, followed by Spain with 12.3% and Mexico with 9.2%. These findings are part of the latest report from Invest in Bogotá, which details the performance of new and expansionary FDI projects in the city through September 30, 2024.

According to this report, foreign Investment in Bogotá exceeded $650 million during the first three quarters of 2024, representing an impressive growth of 30.6% compared to the same period in 2023, when the figure stood at $500 million. Despite global economic challenges, this significant increase underscores the recovery and expansion of foreign investment activities in Colombia’s capital.

Bogotá accounted for 65 new and expansionary investment projects out of the 161 projects registered nationwide. This marked a 29.8% increase compared to the same period in 2023, highlighting the city’s growing appeal as a hub for international business. The United States retained its position as the top investor, contributing 24.6% of total foreign investment. Spain followed with a 12.3% share, and Mexico ranked third with 9.2%. This dominance of American, Spanish, and Mexican investors illustrates foreign Investment in Bogotá as a key driver of the city’s socioeconomic reactivation.

Employment and Project Trends

Despite a 7.1% decline in the number of investment projects compared to the same period in 2023, the monetary value of these investments and the number of jobs created showed robust recovery. Investment volumes grew by 30.6%, while employment generation increased by an impressive 41% during the third quarter of 2024, compared to the same period in the previous year.

Isabella Muñoz, Executive Director of Invest in Bogotá, emphasized the significance of these developments, stating, “This trend demonstrates clear signs of recovery. It is fantastic news for our city and showcases how Foreign Direct Investment is becoming a driving force for socioeconomic reactivation and development in our region.” Her statement underscores the transformative impact of foreign Investment in Bogotá on the city’s economic landscape, particularly in post-pandemic recovery efforts.

Latin America and Global Investment Trends

Globally, new and expansionary FDI projects experienced a 10.7% decline by the third quarter of 2024 compared to the same period in 2023, as reported by fDi Markets. This downturn was reflected across most regions, with Africa registering the steepest drop at 38.9%. Western Europe followed with a 25.8% decline, while Emerging Europe and Latin America, and the Caribbean saw decreases of 22.0% and 12.4%, respectively. The Middle East experienced a smaller contraction of 5.6%, and the Asia-Pacific region registered a modest decline of only 0.3%.

In contrast, North America was the only region to report significant growth, with a 21.6% increase in FDI projects compared to the third quarter of 2023. This growth was primarily driven by increased real estate investments, particularly leasing and rental projects initiated by Regus in the United States.

Latin America: Challenges and Bright Spots

Within Latin America and the Caribbean, six of the top ten FDI-receiving countries experienced declines in investment projects. Costa Rica, Panama, and Uruguay led these negative trends, with project reductions of 55.3%, 52.0%, and 27.3%, respectively, compared to the same period in 2023. These contractions highlight the broader economic challenges facing the region.

Despite this general downturn, Peru emerged as a notable exception. The country recorded project growth, fueled by retail sector investments in food and beverages, textiles, and consumer goods. Additionally, Peru attracted two significant extraction projects valued at over $1.5 billion, showcasing its potential to attract high-value foreign investments.

Implications for Bogotá

Bogotá’s strong performance starkly contrasts broader regional and global trends, underlining its resilience and strategic importance as a destination for foreign investors. The city’s ability to secure a growing share of investment projects and generate employment opportunities positions it as a critical player in Colombia’s economic development and a beacon of recovery in Latin America.

As the year progresses, the continued focus on promoting Bogotá as a competitive and attractive investment destination will likely drive further growth. Foreign Investment in Bogotá bolsters the local economy and strengthens ties with key global markets, reinforcing its status as a leading hub for foreign direct investment in the region.

Summary

Foreign Investment in Bogotá surpassed $650 million by the third quarter of 2024, with the United States leading as the primary investor, followed by Spain and Mexico. This marks a 30.6% increase compared to 2023, highlighting Bogotá’s recovery and growing appeal for international investors. Despite global economic challenges and a regional decline in FDI projects, Bogotá accounted for 65 of Colombia’s 161 new and expansionary investment projects, showcasing its resilience. Investment growth also translated into a 41% rise in employment. With its strong performance amid regional and global downturns, Bogotá reinforces its position as a critical economic hub in Latin America, driving socioeconomic reactivation and strengthening ties with international markets.

Argentina’s Ministry of Economy recently issued Resolution 1363/2024, authorizing the addition of 165 hectares from Trelew’s industrial park as an annex to the Comodoro Rivadavia Free Trade Zone. This development marks a significant milestone in the province of Chubut in Argentina’s efforts to enhance its economic competitiveness and facilitate greater participation in international trade. The Trelew free trade zone expansion promises to create new opportunities for regional economic growth and bolster Argentina’s global trade capacity.

The province of Chubut justified this expansion under exceptional and strategic circumstances, establishing the Free Trade Subzone in Trelew as a critical platform for goods and services. This initiative is designed to reduce logistical costs and streamline administrative processes, fostering increased regional trade and export activity. By leveraging its strategic location and resources, the province aims to position itself as a hub for industrial and economic growth, creating opportunities for local businesses and international investors. The Trelew free trade zone stands at the forefront of this transformative initiative, aiming to connect the region more effectively to global markets.

A Vision Rooted in Adaptation and Innovation

Governor Ignacio Torres, a driving force behind the project, explained that the initiative originated from a leading case in U.S. regulations. This case was carefully adapted to establish the Trelew Free Trade Subzone, requiring amendments to National Resolution 275/1996 within the framework of Law 24,331. The adjustments redefined the original physical boundaries of the Comodoro Rivadavia Free Trade Zone, enabling this innovative expansion.

“The idea of this Free Trade Subzone came long before we knew who would become the nation’s president,” Torres stated. “It was the product of extensive work and a thorough technical study. The best model to remain competitive is a free trade zone. However, there was a problem: two free trade zones could not exist in the same province. The response we got was, ‘Impossible.’ Our answer was to find a way to make it happen.”

Turning Challenges into Opportunities

The governor highlighted that the project represents a transformative step for Trelew and Chubut and a significant contribution to Argentina’s broader economic landscape. “We assembled a team and held numerous sectoral meetings. From a technical standpoint, José ‘Tikho’ Bellorini provided invaluable support, creatively drafting the possibility of achieving this milestone for Trelew,” Torres noted.

The team discovered a U.S. regulation aligned perfectly with their objectives. The foundational principles were adapted to the Argentine context despite being American legislation. “Using this as a foundation, we presented our case, arguing that it would help generate more foreign currency for the country,” Torres explained. Following this breakthrough, collaboration with Minister Luis Caputo’s teams became seamless, paving the way for the resolution’s implementation. This collaborative effort underscores the importance of the Trelew free trade zone in advancing Argentina’s economic goals.

Economic and Social Impact

The governor underscored the project’s broader implications: “If we can add value to these resources, we can export and generate foreign currency. This will help Argentina move past the currency restrictions, achieve macroeconomic stability, and, most importantly, create better and more jobs.”

The Free Trade Subzone in Trelew is poised to focus on activities in fishing, wool, and agricultural products, particularly cherries, which hold significant export potential. Moreover, the subzone is expected to attract new investments in metalworking, textiles, and food production. Both the Trelew and Comodoro Rivadavia zones will operate complementarily, enhancing the region’s industrial integration. By fostering a collaborative ecosystem, the initiative is set to drive sustainable economic growth and position Chubut as a competitive player in international markets. The Trelew free trade zone will play a central role in achieving these objectives by creating a robust environment for investment and innovation.

Legal and Fiscal Framework

José Ignacio Bellorini, a prominent legal expert and professor in the Master’s in Tax Law program at Universidad Austral, shaped the project’s framework. Bellorini explained that “the Free Trade Subzone is a geographically distinct area, inseparably tied to the original concession. This model resembles the so-called Foreign Trade Zone Special Purpose areas, widely recognized for their efficacy in promoting trade and investment.”

Bellorini emphasized the fiscal advantages offered by the subzone, stating, “This represents an opportunity to optimize the fiscal structure of investment projects. It also opens the door to discussing labor regulations within a free trade zone to address cost structures. All of this is designed to provide traceability and confidence to investors.”

Furthermore, establishing the subzone enables Chubut to explore innovative labor relations models. Bellorini added, “Implementing this framework is Chubut’s chance to establish new labor relations, providing predictability for investors by reducing labor costs. These benefits are complemented by the fiscal incentives inherent to a free trade zone.” These measures solidify the Trelew free trade zone as an attractive destination for foreign and domestic investors.

Strengthening Regional Integration and Global Outreach

The Trelew Free Trade Subzone is not merely an isolated initiative but a component of a larger strategy to integrate Chubut more deeply into global trade networks. Reducing logistical costs and streamlined administrative procedures will enable regional businesses to compete more effectively in international markets. This, in turn, will enhance Argentina’s export capacity, generate foreign exchange, and contribute to national economic stability.

The complementary operations of the Trelew and Comodoro Rivadavia zones underscore the potential for regional industrial integration. These zones will form a cohesive network that capitalizes on each location’s unique strengths, from raw material processing to value-added manufacturing. This collaborative approach is expected to attract domestic and international investors, fostering a diversified and resilient economic base. The Trelew free trade zone, as part of this strategy, is set to become a cornerstone of Argentina’s trade and industrial policies.

A Model for the Future

The Trelew Free Trade Subzone in Argentina is a testament to the power of innovation, persistence, and strategic vision. By overcoming legal and logistical challenges, Chubut has set a precedent for other provinces seeking to leverage free trade zones as catalysts for economic growth. The initiative also highlights the importance of adapting international best practices to local contexts, demonstrating that seemingly insurmountable obstacles can be transformed into opportunities.

The World Trade Center Free Zone Punta del Este, situated in Maldonado, Uruguay, is on track for completion by the third quarter of 2025. This landmark project represents the department’s first service-oriented free trade zone, with an investment totaling approximately $75 million. Despite initial delays since its announcement in 2017, construction has gained momentum following the official groundbreaking in June 2022, attended by President Luis Lacalle Pou. Once completed, it will serve as a significant economic and architectural addition to the region, reflecting Uruguay’s commitment to fostering an attractive environment for business and investment.

Project Overview

The World Trade Center Free Zone Punta del Este is designed as a 27-story tower encompassing over 12,700 square meters of space. Of these, 22 floors are dedicated to office spaces, each approximately 750 square meters, complemented by five levels of parking facilities. The building aims to achieve LEED certification, underscoring its energy efficiency and commitment to environmental design. Strategically located at the intersection of Gorlero Street and 23rd Street, across from Plaza de los Artesanos, it offers a prime position in the heart of Punta del Este. Its proximity to key amenities and infrastructure makes it an attractive choice for businesses looking for premium office space within a thriving city.

The architectural design highlights efficiency and modernity. It features curtain wall façades engineered to offer panoramic views of Punta del Este’s coastal beauty while maintaining energy efficiency. High-speed elevators ensure seamless vertical mobility, while stringent security measures provide a safe and comfortable working environment. These features collectively aim to create a workspace that meets international standards and inspires innovation and productivity among its occupants.

Office Space Options

The tower provides a variety of office configurations to cater to diverse business needs:

Raw Spaces: Unfinished “gray” areas allow clients to customize interiors according to their specifications. This option is ideal for companies creating unique environments tailored to their brand and operational requirements.

Fully Equipped Offices: Spaces with completed interior designs, ready for immediate occupancy. These offices are particularly attractive for companies seeking a quick and hassle-free setup.

Business Center Units: Fully furnished offices offering all-inclusive services, ideal for businesses seeking turnkey solutions. These units provide flexibility and convenience, making them suitable for startups, temporary projects, or businesses entering the Uruguayan market for the first time.

In a strategic partnership, the project’s directors have collaborated with Zonamerica to develop the business center format within the free trade zone, enhancing the range of services available to tenants. This collaboration underscores the project’s focus on providing high-quality, tailored solutions for businesses of all sizes and sectors.

Economic Impact and Employment

According to Ignacio Del, CEO of World Trade Center Free Zone Punta del Este, the facility is projected to generate over 1,400 jobs upon becoming operational. These positions will span various sectors, including administration, technology, customer service, and facility management. The employment opportunities are expected to benefit the local community significantly, contributing to the region’s socio-economic development.

The occupancy rate has reached approximately 20%, with several companies, primarily from the technology and professional services sectors, confirming their presence. The free trade zone is expected to attract firms from finance, technology, and professional services, with interest from companies based in the United States, Argentina, and Brazil. Notably, Uruguayan legal firms Dentons Jiménez de Aréchaga and Bragard have secured tenancy, and discussions are ongoing with additional technology companies to finalize agreements. This growing interest highlights the project’s potential as a hub for regional and international business activities.

Uruguay’s Free Trade Zone Regime

Uruguay’s free trade zones (FTZs) offer significant incentives to attract foreign investment and stimulate economic growth. Companies operating within these zones benefit from exemptions on national taxes, including income tax, value-added tax (VAT), and wealth tax. Additionally, there is flexibility regarding social security contributions for foreign personnel, with up to 25% of employees allowed to be foreigners who can opt out of the Uruguayan social security system. These benefits have positioned FTZs as practical tools for promoting investment, job creation, and economic development in Uruguay.

The regulatory framework governing FTZs ensures transparency and stability, key factors contributing to Uruguay’s reputation as a reliable destination for foreign investment. Businesses operating within the World Trade Center Free Zone Punta del Este will benefit from these fiscal advantages and gain access to a supportive ecosystem to facilitate growth and innovation.

Strategic Significance of Punta del Este

Punta del Este is renowned for its natural beauty, modern infrastructure, and high quality of life, making it an attractive destination for tourists and businesses alike. The city’s vibrant economy is supported by a mix of tourism, real estate, and services, creating a dynamic environment for investment. Establishing the WTC Free Zone in this locale is anticipated to extend the tourist season by adding visitor services and providing an optimal environment for businesses.

The presence of the free trade zone is expected to enhance Punta del Este’s appeal as a hub for international organizations and companies seeking a strategic foothold in the region. Its modern infrastructure and Uruguay’s favorable business climate position it as a prime destination for enterprises looking to expand their operations in Latin America.

Architectural and Environmental Features

The architectural design of the WTC Free Zone Punta del Este emphasizes efficiency, sustainability, and quality. The building’s curtain wall façades are visually striking and engineered to optimize natural light while minimizing heat gain, contributing to its energy efficiency. The pursuit of LEED certification further underscores its commitment to environmental stewardship, aligning with global trends toward sustainable development.

High-speed elevators and advanced security systems are integral to the building’s design, ensuring a seamless and safe experience for tenants and visitors. These features reflect a forward-thinking approach to urban development, combining aesthetic appeal with functional excellence.

Broader Implications for Uruguay

Completing the World Trade Center Free Zone Punta del Este represents a significant milestone in Uruguay’s economic landscape, particularly for the Department of Maldonado. By attracting diverse businesses and fostering innovation, the project aligns with national objectives to position Uruguay as a competitive and attractive destination for global investment. Its success could serve as a blueprint for similar developments in other regions, further bolstering the country’s economic prospects.

In addition to its economic contributions, the project is expected to enhance the city’s status as a premier destination for business and tourism. Integrating modern infrastructure with Punta del Este’s natural beauty creates a unique value proposition, drawing international attention and fostering a sense of pride among residents.

Conclusion

The World Trade Center Free Zone Punta del Este is poised to become a cornerstone of Uruguay’s economic development strategy. With its strategic location, state-of-the-art facilities, and the benefits of Uruguay’s free trade zone regime, the project is set to attract a diverse range of international and domestic companies. Its completion is expected to contribute substantially to the local economy by creating jobs, attracting investment, and enhancing the city’s status as a premier destination for business and tourism. This development marks a new chapter in Punta del Este’s history, blending innovation with tradition to create opportunities for growth and prosperity.

According to the results and forecasts presented by the Bank of Guatemala (BANGUAT), Guatemala is expected to close 2024 with a foreign direct investment (FDI) inflow of USD 1.65 billion. While this is a positive indicator of the country’s economic potential, achieving further growth will require strategic actions. Guatemala must implement essential reforms, enhance its financial stability, and strengthen its investment climate to maintain or improve its position as a fertile ground for global investors. The Guatemalan goal for foreign direct investment will hinge on these coordinated efforts.

On the Radar

One of the most critical factors influencing investor decisions is exchange rate stability. Guatemala enjoys a unique advantage in a global market where currency volatility often sparks concern: a stable and predictable exchange rate.

Exchange rates are crucial to investment flows as they are a barometer of a nation’s economic health. A stable exchange rate reassures investors, signaling low financial risks and economic predictability. For the past two decades, the exchange rate between the U.S. dollar and the Guatemalan quetzal (GTQ) has consistently remained within a tight range of GTQ 7.72. This year, BANGUAT forecasts the rate to close at GTQ 7.70, underscoring the country’s long-standing commitment to monetary stability.

“Investors can take on debt in local currency, making it easier to project scenarios in financial statements,” said Álvaro González Ricci, president of the central bank. This stability gives investors confidence and positions Guatemala as a dependable market amid global uncertainty. By leveraging its stable exchange rate, the Guatemalan goal for foreign direct investment can gain momentum, attracting capital inflows and reinforcing economic resilience.

A volatile currency typically signals economic instability, which can deter FDI. This is not a concern for Guatemala, and the nation can leverage this stability to attract more significant capital inflows. Furthermore, the exchange rate stability also aids local businesses in integrating with global supply chains, as predictable costs reduce financial risks in long-term planning.

The Essentials

Guatemala’s credit ratings also significantly influence its appeal to international investors. González Ricci emphasized that improving these ratings would be critical to driving higher levels of investment and meeting the Guatemalan goal for foreign direct investment.

In recent years, the country has demonstrated a consistent record of macroeconomic stability, characterized by low public debt, moderate fiscal deficits, and prudent monetary policies. These efforts have not gone unnoticed by the three major credit rating agencies: Fitch Ratings, Standard & Poor’s (S&P), and Moody’s. For 2024, Fitch and S&P maintained Guatemala’s rating at BB/Ba2, while Moody’s gave it a slightly higher rating of BB/Ba1, just one step below investment grade.

Achieving an investment-grade rating would significantly enhance Guatemala’s economic profile. “With an investment-grade rating, Guatemala would have access to a higher level of investment, which would be extremely positive,” González Ricci noted. He further explained that such a rating would lower the costs of bonds issued abroad, enabling the government to redirect savings on debt servicing toward infrastructure and other developmental projects. These improvements would create a ripple effect, enhancing investor confidence and advancing the Guatemalan goal for foreign direct investment.

Between the Lines

While Guatemala boasts impressive economic indicators, the effective utilization of remittances remains a pressing challenge. BANGUAT projects that foreign currency inflows from remittances will exceed USD 21.6 billion in 2024, a significant sum driven by increasing migration trends. Over the past decade, remittances have grown nearly fourfold, underscoring their importance to the national economy. However, much of this money is currently used for consumption rather than being channeled into productive investments.

González Ricci highlighted the need to change this trend by ensuring that remittances are directed toward financing entrepreneurial ventures, infrastructure projects, or savings initiatives. Transforming remittances into productive capital could stimulate economic growth, create jobs, and foster long-term financial stability for millions of Guatemalans. This shift is a vital component in achieving the Guatemalan goal for foreign direct investment, as it would enhance the nation’s capacity for sustainable development.

Foreign exchange reserves also play a pivotal role in economic resilience and investor confidence. Over the past year, Guatemala has accumulated USD 24 billion in international reserves, which equates to nine months of imports. This figure far exceeds the International Monetary Fund’s (IMF) recommendation of three months of coverage, providing a substantial buffer against economic shocks.

“The IMF requires reserves to cover around three months of imports. In terms of dollars, Guatemala can withstand any shock in demand for the currency, which provides certainty,” González Ricci stated. This financial strength reassures investors, demonstrating the country’s ability to navigate potential external crises effectively. It also positions Guatemala as a reliable destination for investment, aligning with the broader Guatemalan goal for foreign direct investment.

Seen and Unseen

The Legislative branch’s role is integral to achieving the nation’s FDI goals. Legislative support is necessary for passing reforms and allocating resources to enhance Guatemala’s investment climate. A key focus is improving infrastructure, which is essential for reducing logistical costs, boosting competitiveness, and enabling smoother trade flows.

One of the most notable components of this legislative push is the “ANADIE Law,” which remains pending approval. This law aims to promote and streamline public-private partnerships (PPPs), a mechanism that could revolutionize infrastructure development in Guatemala. PPPs provide legal certainty, attract foreign expertise, and enable the creation of high-quality projects.

Kevyn Valencia, acting executive director of ANADIE, Guatemala’s public-private alliance, emphasized the importance of PPPs in enhancing Guatemala’s economic appeal. “The better the projects, the more attractive they will be to investors,” he noted. Valencia also pointed out that the private sector is increasingly interested in participating in infrastructure projects, provided adequate legal and institutional support exists.

Legislative efforts also ensure the country’s fiscal and legal frameworks align with global standards. These reforms are critical for fostering trust among foreign investors, who often prioritize transparent and predictable environments. Strengthening these frameworks will facilitate large-scale investments, further driving the Guatemalan goal for foreign direct investment and encouraging local entrepreneurship to diversify the economy.

The Bottom Line

As Guatemala works toward an ambitious target of USD 1.815 billion in FDI by 2025, a multi-faceted approach will be necessary. Legislative reforms, such as the approval of the ANADIE Law, will be critical in creating the legal framework needed to attract foreign investment. At the same time, leveraging the country’s financial stability, robust international reserves, and exchange rate predictability will solidify investor confidence.

Equally important will be efforts to transform remittances into productive capital and improve the country’s credit ratings. Achieving investment-grade status could unlock unprecedented opportunities for public and private sector growth. However, translating these favorable macroeconomic indicators into tangible, productive projects that strengthen the nation’s economic fabric and drive sustainable development is the ultimate challenge.

Guatemala’s position as a promising investment destination is clear, but realizing its full potential will require coordinated efforts from policymakers, the private sector, and international partners. By addressing its remaining challenges and building on its strengths, the Guatemalan goal for foreign direct investment can become a reality, ensuring steady progress toward the country’s 2025 FDI targets while fostering long-term economic growth.