Substantial Economic Expansion in 2024

Peru was one of the fastest-growing countries in Latin America in 2024, registering an economic expansion of 3.33% for the year. Along with Brazil, Peru led regional economic growth, reflecting a steady recovery and robust performance across multiple sectors. According to the Ministry of Economy and Finance (MEF), this growth marked the most substantial expansion since 2021 and reinforced Peru’s position as one of the leading economies in Latin America.

Key Drivers of Economic Growth

The economic expansion in 2024 was primarily driven by the strong performance of primary sectors, which benefited from neutral climate conditions and increased mineral extraction. Additionally, non-primary sectors saw a significant recovery, fueled by the rebound in domestic demand, greater investment, and rising household consumption.

Performance of Primary Sectors

According to the National Institute of Statistics and Informatics (INEI), Peru’s primary sectors maintained their dynamism throughout 2024, with the fishing sector standing out as the top performer. The fishing industry surged by an impressive 24.9%, attributed to a record-high anchoveta catch enabled by favorable oceanographic conditions. This sector’s outstanding results were crucial in driving overall economic growth in Latin America.

The mining sector, another pillar of Peru’s economy, grew by 2% due to increased molybdenum, gold, and silver production. The year 2024 marked the first full year of operations for the Quellaveco mine, significantly contributing to mining output. Likewise, the hydrocarbons subsector expanded by 2.1%, driven by higher crude oil extraction from Lot 95, where new wells became operational. The agricultural sector also showed resilience, growing by 4.9%, thanks to favorable harvests and strong agro-exports, particularly in blueberries, which maintained high international demand.

Recovery of Non-Primary Sectors

Meanwhile, non-primary sectors also demonstrated notable improvement. The construction sector grew by 3.6%, supported by an uptick in private investment and increased public infrastructure projects. Similarly, the services sector expanded by 3.3%, benefiting from heightened economic activity, while the commerce sector recorded a 3% increase. Additionally, non-primary manufacturing rose by 2.5%, reflecting greater production across various industries.

Domestic Demand and Household Consumption Boost Economic Growth

The MEF highlighted that domestic demand growth, mainly driven by improved private investment and higher public works execution, was fundamental in boosting household consumption. Peru’s robust economic performance in 2024 contributed significantly to economic growth in Latin America, reinforcing the nation’s role as a key player in the region.

Strong End to 2024 with High December Growth

The INEI reported that Peru’s GDP sharply increased by 4.85% in December 2024, the highest monthly growth rate since May 2024. This marked the ninth consecutive month of economic expansion, reinforcing the country’s recovery trajectory.

Significant gains in primary and non-primary sectors bolstered economic activity in December. The primary sectors experienced remarkable growth, expanding by 9.1%, the highest rate since May. The fishing industry alone soared by 76.8%, while primary manufacturing increased by 37.5%, both fueled by the strong anchoveta harvest. Additionally, the agricultural sector grew by 7.5%, driven by higher yields of export crops such as grapes, blueberries, and mangoes and increased poultry farming. The mining sector returned to positive growth with a 2% expansion after two months of contraction, supported by higher molybdenum, copper, gold, and silver production, although zinc extraction declined.

Non-primary sectors also maintained strong momentum, expanding by 3.8% in December, marking nine consecutive months of growth. The commerce sector rose by 3.6%, while services posted a 4.1% increase, benefiting from improved household spending amid rising employment levels. Non-primary manufacturing grew by 3.4%, with notable increases in the production of textiles, clothing, chemicals, furniture, and wood products, among others.

Economic Outlook for 2025

Peru’s economic recovery is expected to gain further traction in the coming months, supported by positive indicators across key areas. For instance, in January 2025, electricity production increased by 2%, marking its eighth consecutive month of growth. Investment and consumption indicators also showed promising signs. The importation of capital goods, including construction materials and transportation equipment, surged by 26.7% in January, extending a ten-month growth streak. Additionally, imports of consumer goods rose by 22.2%, accumulating five months of continuous expansion.

Another positive indicator is the BBVA Big Data Consumption Index, which registered a 9.3% increase in January 2025, maintaining a positive growth trend for fourteen consecutive months. This reflects a continued rise in household consumption, reinforcing optimism about Peru’s economic outlook for 2025.

Summary

Peru demonstrated strong economic growth in Latin America in 2024, registering a 3.33% expansion, making it one of the fastest-growing economies in the region. This growth was fueled by the strength of its primary sectors, particularly fishing, mining, and agriculture, alongside improvements in non-primary sectors such as construction, services, and commerce. December 2024 marked a peak in economic performance, with GDP surging by 4.85%, the highest monthly growth rate of the year. The INEI and MEF emphasized the role of rising domestic demand, investment, and exports in driving this expansion. Peru’s positive trajectory will continue into 2025, supported by increased electricity production, capital goods imports, and rising household consumption. As one of the leaders of economic growth in Latin America, Peru’s resilience and sectoral diversification reinforce its position as a crucial player in regional economic development.

Panama was already beginning to integrate into a semiconductor production network alongside seven other countries. However, sudden shifts in U.S. trade policy under Donald Trump’s new presidency have raised doubts about this program’s implementation speed.

This blog post examines Panama’s present and industrial future amid uncertain investments, growing opportunities, and nearshoring as the global economy adapts to a new framework organized into trade blocs.

Value

Panama’s industrial sector is a vital component of the national economy, accounting for nearly one-third of the gross domestic product (GDP) when including construction.

A significant part of the national industry is agro-industrial production, which integrates manufacturing with agriculture. One of Panama’s main agro-industrial products is sugar. It is estimated that Panama produces more than 150,000 metric tons of sugar per year—equivalent to the weight of over 13,000 “diablos rojos” buses in sugar annually.

On the other hand, the manufacturing subsector has experienced a significant decline relative to the overall economy, contributing 5% of GDP in recent years compared to nearly 20% in 1970. Today, this subsector includes cement, beverages, and processed foods.

The industrial sector also includes electricity generation. Panama has an installed capacity of over 4,200 MW, which covers local demand and generates a small surplus that can be traded within the region.

However, despite this internal diversification, the industrial future of Panama depends on imports, and the sourcing of equipment and software from abroad. It is estimated that more than two-thirds of the goods consumed by the Panamanian industry for operation are imported.

Employment

Last year, approximately one-sixth of the country’s workforce, around 300,000 people, was employed in the industrial sector. The average compensation for skilled industrial workers ranges between $10,000 and $11,000 annually, but the exact figure depends on the subsector. In construction, an experienced worker can earn more than $15,000 annually.

As a stable source of middle-income jobs, the future expansion of industrial employment could be key to halting the severe loss of formal jobs in the country, where the informal employment rate hovers around 50%. Strengthening the industrial future of Panama will be essential in addressing these employment challenges.

Strengths

A solid industrial base enhances economic stability by reducing dependence on imports. This is particularly advantageous in times of global instability.

Moreover, developing a robust manufacturing sector promotes skill acquisition among the population, leading to higher productivity and overall wage growth.

Government assessments have identified the regions around David and Las Tablas as potential industrial hubs, particularly in agro-industry, but promises have outpaced actual investments.

Given the country’s size and population, establishing just three significant industrial investments in strategic locations could significantly increase employment and GDP, addressing several economic challenges, such as the high cost of living and declining competitiveness.

Nearshoring

Nearshoring, in simple terms, refers to the relocation of supplier companies to the Americas from China, Asia in general, India, and, in some cases, Europe. The goal is to simplify international supply chains and reduce risks caused by global uncertainty.

Panama was already beginning to integrate into a semiconductor production network alongside seven other countries. However, sudden shifts in U.S. trade policy under Donald Trump’s new presidency have raised doubts about this program’s implementation speed.

Due to this uncertainty, the country must proactively identify and attract international industrial investments from Europe and Southeast Asia to compensate for any delays in the U.S. plans to restructure its supply chain.

Nevertheless, Panama already possesses an undeniable advantage: the U.S. dollar.

Using this currency eliminates exchange rate risk, making it easier for industrial subsidiaries to relocate to Panama and integrate their financial operations with their U.S. headquarters.

However, the same investment barriers persist. According to the three leading credit rating agencies—Moody’s, S&P Global, and Fitch—these barriers include governance issues, fiscal instability, and a lack of long-term financial planning.

International investors seek to strengthen the rule of law in the country through improvements to the judicial system. This, along with a demonstration of regulatory stability, would facilitate the attraction of foreign direct investment, strengthening the industrial future of Panama.

Export

For decades, the National Government has implemented policies to encourage the development of local export-oriented industries, but the results have been mixed.

The coffee agro-industrial sector, however, took a proactive approach and sought new markets globally, achieving historic sales and elevating Panama’s reputation and prestige. Subsequently, the National Government offered additional incentives that facilitated this development.

Based on this experience, an effective strategy to drive industrial growth for export purposes would be offering economic incentives to private sector players outside government agencies who successfully open new markets for existing or developing Panamanian industries.

Such a strategy could promote commercial expansion under private sector leadership rather than keeping it tied to the bureaucratic processes of official trade missions and lengthy customs authorizations.

Steps Forward

According to studies by the International Monetary Fund, Panama will need to strengthen its legal and fiscal stability, maintain its investment pace in its logistics network to support manufacturing exports, and invest in new energy sources to sustain additional productivity to expand its industrial sector beyond construction.

The domestic development of new industries, the expansion of existing ones, or the establishment of operations in Panama by foreign companies would have the dual advantage of increasing formal employment and developing workforce capabilities for future activities.

For all these reasons, the industrial future of Panama holds significant potential that the country could leverage, alongside its geographic location, to build a resilient and competitive productive base for the 21st century.

If a well-planned industrial policy is implemented, an additional 1% increase in the industrial GDP in the medium term could eventually contribute between $600 million and $800 million annually, improving wages, formal employment, and export competitiveness.

How do these alliances impact the country? Stay with us and discover how these partnerships can be the key to a prosperous future for Honduras.

Honduras, as part of the Central American economy, has sought to strengthen its trade and development through regional trade alliances. These partnerships have allowed the country to expand its markets, attract foreign investment, and enhance the competitiveness of its products. The various trade alliances in Honduras provide a framework for economic cooperation, opening opportunities for local businesses and industries to thrive.

What are Honduras’ main trade alliances?

Central American Common Market (MCCA)

The Central American Common Market (MCCA) comprises Guatemala, El Salvador, Honduras, Nicaragua, Panama, and Costa Rica. This alliance aims for economic integration by eliminating tariff barriers and enabling the free movement of goods.

It is governed by the General Treaty on Central American Economic Integration of 1960 and its amending protocols.

Benefits for Honduras:

• Preferential access to Guatemala, El Salvador, Nicaragua, and Costa Rica markets.
• Facilitate trade in Honduran products, predominantly agricultural and manufactured goods.
• Promotion of investment in sectors such as the textile industry and agribusiness.

However, harmonizing regulations and logistical infrastructure challenges may hinder smooth trade between member countries. Trade alliances in Honduras, including the MCCA, must address these challenges to ensure seamless regional trade and integration.

Chapter II of the General Treaty on Central American Economic Integration states that unroasted coffee and cane sugar are subject to import duties and controls in the five countries.

Customs Union with Guatemala and El Salvador

The Northern Triangle Customs Union, formed by El Salvador, Guatemala, and Honduras, facilitates the unrestricted transit of goods and establishes coordinated customs control at its borders.

• Advantages for Honduras:
• Reduction in export and import costs.
• Streamlining of customs procedures and increased trade competitiveness.
• Expansion of the market for small and medium-sized Honduran enterprises.

This customs union represents a significant step toward Central American economic integration. As one of Honduras’s most strategic trade alliances, it reduces trade barriers and fosters economic growth.

Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)

The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) is one of the most significant alliances for Honduras. Signed in 2004, this agreement provides favorable conditions for Honduran goods to enter the U.S. market.

Impact on Honduras:

• Increase in exports of textiles, coffee, shrimp, and melon.
• Job creation in industrial and agricultural sectors.
• Attraction of foreign investment in manufacturing and maquiladora industries.

Although this agreement offers various advantages, the influx of imported products has increased competition for Honduras. This has significantly impacted some domestic industries, requiring local companies to innovate, reduce costs, or improve product quality to remain competitive. Strengthening trade alliances in Honduras, such as CAFTA-DR, is essential to maintaining economic resilience.

Central American Integration System (SICA)

The Central American Integration System (SICA) seeks to transform the Central American region and the Dominican Republic into an area founded on peace, freedom, democracy, and development.

SICA includes Belize, Costa Rica, El Salvador, Honduras, Nicaragua, Panama, and the Dominican Republic.

Central America has vast biodiversity and is a natural bridge between North and South America. It is also home to a strategic canal that connects the two oceans surrounding Latin America.

Economic benefits:

• Facilitates the development of shared infrastructure.
• Promotes sustainable trade and financial integration.
• Encourages agreements in strategic sectors such as energy and tourism.

Despite these advantages, full integration faces challenges, particularly in harmonizing economic policies and simplifying bureaucratic procedures. Trade alliances in Honduras, such as SICA, must continue addressing these issues to maximize their potential for economic development.

What challenges does Honduras face in trade alliances?

Despite the benefits provided by these alliances, Honduras also faces several challenges in maximizing its participation in them.

Deficient Infrastructure

Honduras’ roads, ports, and customs facilities require modernization to expedite trade and improve regional competitiveness. Without adequate infrastructure, the transportation of goods becomes slow and costly, negatively impacting the country’s economy.

Bureaucracy in Trade Procedures

The digitalization and simplification of administrative processes are essential for improving trade efficiency. Excessive bureaucracy delays exports and imports, reducing Honduras’ competitiveness in international markets.

Diversification of Exportable Products

Honduras’ economy relies heavily on traditional products such as coffee and textiles. To strengthen its position in global trade, it is essential to diversify its export portfolio and promote emerging sectors with higher added value.

Business Training

Many small and medium-sized enterprises are unaware of how to leverage trade agreements’ benefits. Training and advisory services in foreign trade would help these businesses expand and take advantage of new opportunities in the international market.

Political and Social Instability

Economic growth and foreign investment depend on a stable and secure environment. Political uncertainty and social issues can deter investors, limiting development and job creation in the country.

Conclusion

Trade alliances play a fundamental role in Honduras’ economic development, providing access to international markets, attracting foreign investment, and boosting industrial and agricultural growth. Agreements such as the MCCA, the Customs Union, CAFTA-DR, and SICA have contributed significantly to the country’s trade expansion and regional integration. However, to fully exploit these benefits, trade alliances in Honduras must be supported by improvements in infrastructure, reduced bureaucratic barriers, diversification of exports, and enhanced business training programs.

The Dominican Republic has experienced significant economic progress over the past few decades, emerging as one of the fastest-growing economies in Latin America. However, a comprehensive assessment of the country’s economic development requires an analysis of various key factors, including natural resources, human capital, infrastructure, technological development, quality of public institutions, economic policies, level of industrialization, access to capital and credit, geographic location, demographics, cultural and social factors, global economic integration, environmental sustainability, political stability and security, and innovation and entrepreneurship. This article explores these dimensions while highlighting the ongoing challenges and opportunities for economic development in the Dominican Republic.

Natural Resources

The Dominican Republic is rich in natural resources, including gold, silver, nickel, bauxite, and limestone. Mining is vital, contributing significantly to GDP and foreign exchange earnings. The country also boasts fertile agricultural land, supporting the production of sugar, coffee, cocoa, and bananas. While resource extraction has fueled growth, sustainable management remains challenging due to environmental concerns and regulatory oversight.

Human Capital

Human capital plays a crucial role in economic development in the Dominican Republic. The country has a relatively young and growing labor force, with over 60% of the population under 40. However, skills gaps, a lack of technical education, and limited vocational training programs hinder workforce productivity. Continued investment in education and skill development is necessary to enhance economic competitiveness.

Infrastructure

The Dominican Republic has made substantial investments in infrastructure, including roads, ports, and energy systems. The country has a well-developed tourism infrastructure, supporting its position as a top Caribbean destination. However, issues such as inadequate public transportation, high energy costs, and the need for improved rural infrastructure remain pressing concerns for sustainable economic growth.

Technological Development

The Dominican Republic’s technological development is growing but still lags behind other emerging economies. The government has promoted digital transformation by expanding internet access and supporting the tech industry. However, limited research and development (R&D) spending, insufficient IT training, and digital inequality persist.

Quality of Public Institutions

The quality of public institutions significantly impacts economic development in the Dominican Republic. While the government has made strides in improving transparency and regulatory frameworks, corruption remains a concern. Strengthening institutions, enhancing the rule of law, and reducing bureaucratic inefficiencies are essential for fostering a conducive business environment.

Economic Policies

Economic policies in the Dominican Republic have played a key role in driving growth. The country has embraced market-oriented policies, attracting foreign investment and expanding trade. Tax incentives for businesses, free trade zones, and policies promoting tourism have contributed to economic diversification. However, high levels of public debt and fiscal imbalances challenge long-term stability.

Level of Industrialization

The Dominican Republic has a diversified economy with key industrial sectors, including manufacturing, tourism, and services. The free trade zone sector has been a significant driver of industrialization, particularly in textiles, medical devices, and electronics. However, further efforts are needed to enhance value-added manufacturing and reduce dependence on low-cost assembly industries.

Access to Capital and Credit

Access to capital and credit remains challenging for many businesses, particularly small and medium-sized enterprises (SMEs). The banking sector has expanded in recent years, but high interest rates and limited financial inclusion hinder broader access to credit. Strengthening financial literacy programs and expanding microfinance initiatives could support business development and economic expansion.

Geographic Location

The Dominican Republic’s strategic location in the Caribbean provides significant trade and investment advantages. Its proximity to the United States, Latin America, and Europe facilitates exports and attracts foreign direct investment. Additionally, its coastal location supports a robust tourism industry. However, vulnerability to hurricanes and climate change poses risks to long-term development.

Demographics

The country’s growing and youthful population provides a dynamic labor force that can drive economic development in the Dominican Republic. However, challenges such as income inequality, urbanization pressures, and unemployment must be addressed to maximize demographic dividends.

Cultural and Social Factors

Cultural and social factors, including a strong entrepreneurial spirit, tourism-driven hospitality, and a rich cultural heritage, play a role in economic growth. However, social inequalities, educational disparities, and limited gender inclusivity in the workforce present hurdles that must be addressed to ensure inclusive development.

Global Economic Integration

The Dominican Republic has actively pursued global economic integration through trade agreements like the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). The country has strengthened ties with major economies, boosting exports and foreign investment. Nevertheless, dependency on external markets and global economic volatility risks economic stability.

Environmental Sustainability

Environmental sustainability is essential for long-term economic development in the Dominican Republic. The country faces deforestation, water pollution, and coastal erosion. Efforts to promote renewable energy, sustainable tourism, and environmental conservation are crucial to balancing growth with ecological preservation.

Political Stability and Security

Political stability and security are essential for fostering investor confidence and economic progress. While the Dominican Republic has remained relatively stable compared to neighboring countries, issues such as organized crime, corruption, and governance challenges must be addressed to ensure a secure economic environment.

Innovation and Entrepreneurship

Innovation and entrepreneurship are increasingly shaping the economic landscape. The government has launched initiatives to support startups and innovation hubs. However, limited access to funding, bureaucratic hurdles, and regulatory inefficiencies still hinder entrepreneurial growth. Encouraging a more vibrant innovation ecosystem will be key to long-term competitiveness.

Conclusion

Economic development in the Dominican Republic has been marked by rapid growth and diversification, supported by key sectors such as tourism, manufacturing, and services. However, challenges remain in technological development, financial inclusion, environmental sustainability, and institutional quality. Addressing these issues through strategic investments, policy reforms, and enhanced governance will be critical to sustaining and accelerating economic development in the Dominican Republic. The country’s continued integration into the global economy and strong domestic policies will determine its long-term prosperity.

Introduction

Embraer, one of the world’s leading aerospace manufacturers, has announced plans to invest approximately $3.5 billion by 2030. This strategic move was revealed during the “Mission 6 of Nova Indústria Brasil (NIB)—Technologies of Interest for National Sovereignty and Defense” ceremony held in Brasília. Brazilian President Luiz Inácio Lula da Silva, Vice President Geraldo Alckmin, and other high-ranking government officials attended the event.

Embraer’s investment in aerospace aligns with the company’s long-term growth strategy, which focuses on increasing aircraft production, expanding international market reach, and fostering the development of sustainable aerospace technologies. The move is expected to solidify Brazil’s position as a global leader in aviation innovation while boosting economic growth and job creation.

Expanding Aircraft Production and Global Market Presence

Much of the Embraer investment in aerospace will be directed toward ramping up aircraft production to meet increasing global demand. Embraer has a strong presence in the commercial, executive, and defense aviation sectors, producing aircraft such as the E-Jet family, the KC-390 Millennium, and the Phenom series of executive jets. The company plans to enhance its manufacturing capabilities to meet the evolving needs of civilian and military customers worldwide.

Embraer has been steadily expanding its international footprint, particularly in the United States, Europe, and Asia. The company aims to improve its competitive edge in the highly dynamic aerospace sector by strengthening its global supply chain and forging new partnerships. The Embraer investment in aerospace will also support the continued growth of Embraer Defense & Security, which has been developing cutting-edge military aircraft and advanced systems for national and international defense forces.

Sustainable Aerospace Technologies and the eVTOL Revolution

One of the most groundbreaking aspects of Embraer’s investment in aerospace is its commitment to sustainable aviation. The company has been actively developing environmentally friendly technologies to reduce carbon emissions in the aerospace industry. A key initiative in this effort is developing the eVTOL (electric vertical takeoff and landing vehicle) through EVE, an Embraer-backed subsidiary.

EVE’s eVTOL aircraft represents a significant step toward the future of urban air mobility. Designed to provide efficient, low-emission transportation in congested urban environments, eVTOLs have the potential to revolutionize how people and goods move within cities. With the backing of Embraer, EVE has been making strides in advancing battery technology, energy efficiency, and autonomous flight capabilities.

In addition to eVTOLs, Embraer is exploring other sustainable aviation solutions, such as hybrid-electric propulsion, biofuels, and hydrogen-powered aircraft. The company’s commitment to sustainability aligns with global efforts to achieve net-zero emissions in aviation by 2050.

The Role of Nova Indústria Brasil (NIB) and Government Support

The Nova Indústria Brasil (NIB) program revitalizes Brazil’s industrial competitiveness. By fostering collaboration between private companies, government agencies, and research institutions, the initiative aims to position Brazil as a leader in high-tech manufacturing.

Francisco Gomes Neto, President and CEO of Embraer, emphasized the importance of this collaboration, stating, “The Nova Indústria Brasil program plays an essential role in restoring the country’s competitiveness. The alliance with Embraer and the entire Defense Industrial Base will continue to promote Brazilian product exports, generate skilled jobs and income, and ensure mastery of critical technologies for national sovereignty.”

Through its strategic partnership with the government, Embraer investment in aerospace will benefit from policy support, research incentives, and infrastructure development, all of which will facilitate the company’s ambitious expansion plans.

Strengthening Brazil’s Aerospace and Defense Industry

Brazil has long been recognized as an aerospace and defense manufacturing leader, with Embraer at the forefront of the industry. The country’s ability to design and produce world-class aircraft has been made possible through strong collaborations between government entities, academic institutions, and private enterprises.

By investing heavily in research and development (R&D), Embraer ensures that Brazil remains competitive in the global aerospace sector. The company’s partnerships with leading universities and technology centers have contributed to aerodynamics, materials science, and advancements in avionics. This focus on innovation will help Brazil maintain its edge in a highly competitive and rapidly evolving industry.

Job Creation and Workforce Development

Embraer’s investment will also directly impact Brazil’s job creation and workforce development. Currently, the company employs 23,500 people worldwide, with 18,000 based in Brazil. Over the past two years, Embraer has generated over 2,500 new jobs, surpassing its pre-pandemic employment levels.

The company is committed to nurturing talent through specialized training programs, apprenticeships, and collaboration with technical institutions. By investing in professional development, Embraer ensures its workforce remains highly skilled and adaptable to technological advancements.

Expanding Embraer’s production facilities will also create thousands of indirect jobs, benefiting local suppliers, logistics providers, and service industries. This ripple effect will contribute significantly to Brazil’s economic growth and industrial modernization.

Conclusion

Embraer investment in aerospace represents a significant milestone in its history, reinforcing its commitment to growth, innovation, and sustainability. By increasing aircraft production, expanding its global market presence, and pioneering eco-friendly aerospace technologies, Embraer is poised to shape the future of aviation.

The collaboration between Embraer, the Brazilian government, and research institutions will be instrumental in maintaining the country’s competitive edge in the aerospace and defense sectors. Moreover, the investment will generate significant economic benefits, including job creation, export growth, and technological advancements.

As Embraer moves forward with its ambitious plans, it will continue to play a crucial role in shaping the aerospace industry while contributing to Brazil’s economic prosperity and global technological leadership.

CEAPI Recognizes Progress in Security and Investment Climate

The Business Council for Ibero-America Alliance (CEAPI) highlighted El Salvador’s security and the government’s current policies, acknowledging the country’s improvements while calling for further administrative simplifications to attract foreign capital. A CEAPI delegation visited El Salvador recently, meeting with business leaders and government officials to assess investment conditions.

CEAPI President Núria Vilanova praised the progress made, stating that El Salvador has successfully established a strong foundation in security, making it a more attractive destination for investors. However, she emphasized the need to streamline bureaucratic procedures and enhance workforce training to fully unlock the country’s economic potential.

Investment and Workforce Development Are Key Priorities

During discussions, Vilanova underscored the importance of continuing reforms to facilitate foreign investment. “The country is on the right track, security, which it already has; a navigable administration; clear policies; and talent, which it possesses. Improving workforce training is key. We saw interest in the launch of the university spearheaded by Roberto Kriete and potential partnerships,” she noted.

CEAPI stressed that ongoing dialogue between the private sector and the government is critical to fostering economic opportunities and ensuring sustainable growth. As a result, foreign investors are looking for a business environment that offers both stability and efficiency in administrative procedures.

According to the Central Reserve Bank (BCR), net foreign direct investment (FDI) flows reached $387.44 million during the first three quarters of 2024. The investment trend fluctuated, with FDI totaling $195.67 million in the first quarter. However, the second quarter saw a decline as outflows exceeded inflows, resulting in net FDI of -$33.6 million. In the third quarter, investment rebounded significantly, with a net inflow of $225.37 million.

Spanish Companies and Their Influence in El Salvador

CEAPI highlighted the long-standing role of Spanish companies in Latin America, noting that Spain has been one of the largest foreign investors in the region for over four decades. “Spain has been investing in Latin America for more than 40 years and has become the first or second largest investor in many countries in accumulated investment,” Vilanova stated.

Spanish companies such as Calvo and Prosegur have established a strong presence in El Salvador, generating employment and contributing to economic development. According to the BCR, FDI from Spain alone amounted to $396.21 million in the first three quarters of 2024, reflecting Spain’s continued interest in the Salvadoran market.

Projections for 2025 and New Investment Opportunities

In 2025, CEAPI expects Ibero-American companies to continue injecting capital into El Salvador across various industries, including food production, water treatment plants, energy, and tourism. The Council views the tourism sector as promising, with significant potential for economic growth.

“Additional renewable energy, tourism, and agribusiness projects are under consideration. This could increase the average growth of recent years, which has already improved significantly,” Vilanova noted. She also suggested that new investment projects could be implemented as early as 2026, further strengthening El Salvador’s economic outlook.

During CEAPI’s visit, the delegation toured the historic center of San Salvador and met with key business figures and policymakers to discuss potential investment strategies. Vilanova praised local business leaders, including Carlos Callejas and Roberto Kriete, for contributing to the country’s economic expansion and international business ventures.

Local Business Leaders Making a Regional Impact

CEAPI acknowledged the efforts of Salvadoran entrepreneurs who have successfully expanded their businesses beyond national borders. Vilanova specifically highlighted the case of Carlos Callejas, describing him as an example of how a “small fish can eat the big fish” due to his strategic vision, organization, and business acumen. His acquisition of an 86.5% stake in the Colombian supermarket chain Éxito was cited as a testament to his business expertise.

Similarly, Vilanova praised Roberto Kriete for expanding his investments into Peru and the United States, reinforcing the idea that Salvadoran business leaders can significantly impact global markets. CEAPI expressed hope that El Salvador would create further opportunities for local entrepreneurs to grow and expand into regions like Spain.

Logistics and Infrastructure Development

On logistics, Vilanova addressed concerns about port congestion, noting that such challenges are not unique to El Salvador. She pointed out that as global trade traffic increases, greater investment in port infrastructure is necessary to maintain efficiency and competitiveness.

CEAPI emphasized that El Salvador has a strategic advantage over other nations due to its geographic location and the growing trend of nearshoring, where U.S. companies are relocating operations closer to North American markets. Strengthening trade ties between El Salvador and the United States further enhances the country’s attractiveness as a business hub.

“There is a need to attract port operators that can capitalize on these opportunities in El Salvador,” CEAPI stated. The organization reaffirmed its commitment to supporting Salvadoran businesses and the government in overcoming logistical challenges by working closely with port sector clients and analyzing best practices worldwide.

Security in El Salvador: A Critical Factor for Investment Growth

CEAPI repeatedly emphasized that security in El Salvador has been one of the country’s most significant achievements, making it a more favorable environment for foreign investors. The Council noted that improved security conditions have helped restore confidence among businesses and entrepreneurs, leading to increased interest from international investors.

With crime rates declining and law enforcement efforts strengthening, companies can operate with greater certainty and reduced risk. Vilanova reiterated that security in El Salvador is vital to its economic strategy and should remain a top priority for long-term investment success.

In addition to reinforcing security in El Salvador, CEAPI encouraged the government to continue refining regulatory processes to ensure that businesses can establish operations smoothly and efficiently. Eliminating bureaucratic bottlenecks can accelerate economic growth and attract more foreign capital.

Conclusion

El Salvador’s economic progress, bolstered by security improvements and strategic investments, positions the country as an attractive destination for Ibero-American and global investors. CEAPI’s recommendations focus on streamlining administrative procedures, enhancing workforce development, and addressing logistical infrastructure needs.

The organization’s delegation underscored the importance of continued collaboration between the private sector and the government to create a business-friendly environment. With security in El Salvador remaining a cornerstone of its investment appeal, further economic reforms and targeted industry growth could pave the way for a prosperous 2025 and beyond.