Honduran economist Julio Raudales recently described Foreign Minister Enrique Reina’s statements as “careless.” Reina claimed that the temporary suspension of U.S. cooperation affects the private sector and NGOs more than the central government. Raudales emphasized that international resources finance 60% of Public Investment in Honduras.

“What the Foreign Minister said is careless and shows how little understanding some officials have about crucial aspects of the country,” Raudales stated. The former president of the Honduran College of Economists (CHE) highlighted the importance of external resources allocated to projects that drive national development.

“This is such an important issue for the country that 60% of our public investment program is funded by international cooperation,” Raudales said, referencing institutions such as the World Bank (WB), the Inter-American Development Bank (IDB), the Central American Bank for Economic Integration (CABEI), the European Union, and now the Development Bank of Latin America and the Caribbean (CAF). These resources are vital for sustaining public investment in Honduras and ensuring key infrastructure and development programs remain viable.

Raudales also criticized the decision to transfer the management of international cooperation from the Ministry of Planning to the Ministry of Foreign Affairs, a change made during the 2014–2022 administrations under former President Juan Orlando Hernández. “There was an institutional breakdown in the management of cooperation,” he said, recalling that since the 1960s, cooperation programs had been managed by the Superior Council of Economic Planning (Consuplane), later by the Ministry of Planning (Seplan), and in the 1990s by the Technical Secretariat for International Cooperation (Setco).

Now, with the Ministry of Foreign Affairs in charge, Raudales argues, “international cooperation has become a matter of bureaucracy rather than understanding the country’s development process within the framework of international cooperation. We must pragmatically accept that many of our development programs are funded by international resources,” he insisted. These resources play a fundamental role in Public Investment in Honduras, allowing the country to achieve progress in areas it otherwise could not finance.

He added that in large countries like Spain, Germany, Canada, and the United States, international cooperation is managed through foreign ministries because it is considered a policy tool. However, in Honduras, it is more of a development tool.

Fostering Dialogue with the U.S.

For her part, Lidia Fromm, former Director General of International Cooperation, said the government must establish an open dialogue with the United States, understanding that the country will review its cooperation commitments over the next 90 days.

“It’s important to consider who the Secretary of State is—Marco Rubio, the son of Cuban migrants—and I believe there is an opportunity for us, as Latin Americans and as a U.S. ally, to send messages and reach agreements that benefit us as a nation,” she said.

Fromm stressed that the impact of the U.S. pause in cooperation with countries like Honduras should not be minimized, as it ultimately affects not only NGOs and the private sector but also the beneficiaries of their programs and public sectors.

“A key feature of U.S. cooperation is its significant work with municipalities, which is commendable since it’s uncommon. If we lose that cooperation, municipalities will also be affected,” she pointed out. The loss of such cooperation would have a cascading effect on Public Investment in Honduras, particularly at the local level.

Consequences of Foreign Aid Suspension

Amparo Canales, former president of the CHE, emphasized that U.S. cooperation complements state actions in various areas, meaning that the beneficiaries of these projects will also be negatively affected.

Canales also recalled that during Donald Trump’s first term, several important projects were canceled, such as those related to climate change and the Governance in Ecosystems, Livelihoods, and Water (GEMA) project. Such suspensions highlight the precarious reliance of Public Investment in Honduras on external funding.

Analyzing the Impact of Cooperation

Ricardo Matamoros, Director of scientific research at the National Autonomous University of Honduras (UNAH), also emphasized that the country’s international resources complement its efforts to lead projects and advance its development agenda. However, interpreting Foreign Minister Enrique Reina’s statements, Matamoros suggested that the minister might have meant that the three-month suspension of U.S. cooperation has a minimal impact on the central government but is more significant for assistance to other sectors of the country.

Matamoros further noted the need to analyze the long-term impact of foreign cooperation, adding that this is not the first time the U.S. and other donor countries have suspended aid to Honduras. This dependency underscores the critical relationship between foreign aid and Public Investment in Honduras, directly influencing the nation’s development trajectory.

According to Foreign Minister Enrique Reina, U.S. cooperation over the last four years amounted to approximately $700 million, most of which was channeled through NGOs and the private sector.

Conclusion

In conclusion, Honduras’s development relies heavily on international cooperation, which funds 60% of public investment in Honduras. The suspension of U.S. aid poses significant risks to municipalities, NGOs, and public programs critical for the country’s progress. While government officials debate the immediate impact of such measures, experts agree that losing these resources will have long-term implications on Public Investment in Honduras and the overall well-being of its citizens. Reassessing institutional management and fostering diplomatic relations with donor nations remain crucial for ensuring continued development funding.

Panama, renowned for its strategic location as a global logistics hub, has emerged as an increasingly attractive destination for manufacturing activities. The country’s advantageous position, nestled between North and South America and providing access to the Atlantic and Pacific Oceans, has long made it a cornerstone of international trade. This unique geographical position, with robust infrastructure and government-backed incentives, makes manufacturing in Panama a lucrative proposition for businesses across various industries.

Why Panama is Ideal for Manufacturing

Strategic Location

Panama’s geographical position is one of its most significant advantages. The country is home to the Panama Canal, a vital artery of global commerce that facilitates the transportation of goods between major markets. Manufacturing companies in Panama benefit from this connectivity, enabling efficient shipping of raw materials and finished goods worldwide.

Additionally, Panama’s proximity to major consumer markets in North and South America offers companies an opportunity to reduce transportation costs and lead times. For businesses looking to expand into Latin America or serve multiple continents, Panama provides a gateway to achieve these goals seamlessly.

Political and Economic Stability

Panama boasts a stable political climate and a growing economy, underpinned by its robust financial services sector and revenue from the Panama Canal. The country has consistently committed to creating a business-friendly environment, further bolstering its appeal as a manufacturing hub.

Connectivity and Infrastructure

Panama’s well-developed transportation and logistics infrastructure distinguishes it from other manufacturing destinations. The country’s ports, including the Colón Free Zone and Balboa Port, are among the most efficient in Latin America. These ports are complemented by Tocumen International Airport, the region’s busiest air cargo hub, and a network of highways and railways connecting major cities and industrial zones.

Key Manufacturing Industries in Panama

Electronics and Technology

Panama’s electronics and technology manufacturing sector has grown steadily in recent years. Companies producing electronic components, telecommunications equipment, and consumer electronics have established operations in the country, leveraging its skilled workforce and proximity to global markets.

Food and Beverage Processing

The food and beverage industry is critical in Panama’s manufacturing landscape. The country’s access to fresh raw materials and modern processing facilities bolsters the production of packaged foods, beverages, and agricultural products. Nestlé and Cervecería Nacional operate large-scale manufacturing plants in Panama, supplying domestic and international markets.

Pharmaceuticals and Healthcare Products

Panama’s pharmaceuticals and healthcare manufacturing sector is rapidly expanding, driven by domestic demand and export opportunities. Manufacturers benefit from the country’s stringent regulatory standards and access to advanced research facilities. Prominent companies in this sector include Panama Pharma and Laboratorios Rigar.

Textiles and Apparel

Panama’s textiles and apparel industry focuses on domestic and export markets. Companies capitalize on the country’s free zones and trade agreements to manufacture high-quality garments and accessories at competitive costs. The Colón Free Zone is a key hub for textile manufacturers.

Key Manufacturing Locations in Panama

Panama City

As the capital and economic heart of the country, Panama City hosts numerous manufacturing companies, particularly those in the high-tech and pharmaceutical sectors. Its proximity to Tocumen International Airport makes it ideal for companies that rely on efficient air freight logistics.

Colón Free Zone

The Colón Free Zone, located near the Atlantic entrance of the Panama Canal, is the largest free trade zone in the Western Hemisphere. This area is a base for various manufacturing activities, including electronics, textiles, and food processing. Companies in the zone benefit from duty-free imports and exports and a suite of tax exemptions.

Panama Pacifico

Panama Pacifico, a mixed-use development located on the former Howard Air Force Base, has become a thriving industrial and commercial zone. It offers state-of-the-art facilities and tailored incentives for manufacturing and logistics companies. Major international firms like Dell and 3M have set up operations here.

David and Chiriquí Province

The western province of Chiriquí, with its abundant agricultural resources, is a hub for food and beverage processing. The city of David serves as a key manufacturing center for companies that produce packaged foods and agricultural products.

Physical Infrastructure Supporting Manufacturing in Panama

Ports and Logistics

Panama’s ports rank among the most advanced in Latin America, with modern container-handling facilities and seamless integration into global shipping networks. Key ports include:

• Port of Balboa (Pacific coast): A significant transshipment hub connecting Asia and the Americas.
• Port of Cristóbal (Atlantic coast): Equipped to handle high volumes of container traffic and bulk cargo.

Energy Supply

Panama’s reliable energy infrastructure is another advantage for manufacturers. The country generates electricity from diverse sources, including hydroelectric, wind, and solar power, ensuring a stable and sustainable energy supply.

Telecommunications

Panama boasts a modern telecommunications network, including widespread internet connectivity and mobile coverage. This infrastructure supports manufacturing companies that rely on digital systems and IoT (Internet of Things) technologies.

Human Capital in Panama

Skilled Workforce

Panama’s labor force is characterized by its high literacy rate and multilingual proficiency, particularly in Spanish and English. The government has invested heavily in education and vocational training programs, ensuring a steady supply of skilled workers for manufacturing industries.

Technical Training Centers

Institutions such as the National Institute for Vocational Training and Training for Human Development (INADEH) offer specialized programs to equip workers with the technical skills needed in manufacturing. These initiatives address the needs of the electronics, pharmaceuticals, and food processing industries.

Government Incentives for Manufacturing in Panama

The Panamanian government has implemented a range of incentives to attract manufacturing companies. These incentives are designed to reduce operational costs and enhance business profitability.

Tax Incentives

• Manufacturers in Panama can benefit from:
• Income tax exemptions for companies operating in free zones.
• Reduced corporate tax rates for export-oriented businesses.
• Exemptions on import duties for raw materials and equipment.

Special Customs Regimes

The country’s special customs regimes simplify procedures for importing and exporting goods. Companies operating in free zones or under specific agreements enjoy expedited customs clearance and reduced tariffs.

Free Zones

Panama’s free zones, such as the Colón Free Zone and Panama Pacifico, offer a range of benefits, including:

• Duty-free import and export of goods.
• 100% exemption from income, property, and dividend taxes.
• Streamlined administrative processes for setting up operations.
• Multinational Headquarters (MHQ) Program

The MHQ program encourages multinational companies to establish regional headquarters in Panama. Participating companies receive significant tax breaks and can hire foreign personnel under favorable visa conditions.

Challenges and Opportunities

Challenges

Despite its many advantages, manufacturing in Panama does face some challenges, including relatively high labor costs compared to other Latin American countries. Additionally, some companies may encounter bureaucratic hurdles when navigating regulatory frameworks.

Opportunities

However, the opportunities outweigh the challenges. Panama’s strategic location, robust infrastructure, and government support position it as a competitive manufacturing destination. The growing emphasis on nearshoring, particularly for North American companies, further enhances Panama’s appeal.

Future Outlook

Panama’s government has outlined ambitious plans to develop its manufacturing sector further. Investments in renewable energy, digital transformation, and infrastructure upgrades are expected to attract more companies to the country. Promoting sustainable manufacturing practices also aligns with global trends and enhances Panama’s competitive edge.

Conclusion

Manufacturing in Panama offers businesses unique strategic advantages, including a prime location, world-class infrastructure, and government incentives. The country’s diverse manufacturing industries, skilled workforce, and supportive regulatory environment make it a top choice for companies seeking to expand their operations in Latin America.

As global supply chains evolve, Panama’s role as a manufacturing hub is poised to grow. Businesses looking to capitalize on the region’s opportunities should consider Panama a key destination for their manufacturing activities.

According to Rob Citrone, founder of Discovery Capital Management, the Argentine economy is undergoing a transformation process that could boost its credit rating and attract billions in investments. These developments underscore the increasing capital flows to Argentina as global investors recognize the country’s potential for sustained growth.

According to Citrone,, Argentina is at a decisive stage in consolidating its economic growth. The fund manager highlighted the possibility of the country achieving investment-grade status during a potential second term of Javier Milei, provided structural reforms are deepened. Citrone emphasized that capital flows to Argentina could be bolstered significantly if reforms are implemented effectively.

“President Milei has a real plan, and if he were reelected and further deepened the reforms significantly, there is a good chance that Argentina could achieve investment grade by the end of 2031,” Citrone stated in an exclusive interview with Bloomberg en Línea. He also noted that Milei could cement “stability in Argentina for years, decades, and generations to come,” creating the ideal environment for increased capital flows to Argentina from both domestic and international investors.

Factors Behind Investment-Grade Status

Investment-grade status, awarded by firms such as Moody’s, S&P, and Fitch, reflects a country’s ability to meet its financial obligations. Its benefits include lower interest rates for debt issuance, greater attraction of foreign investment, and increased economic stability.

Citrone explained that Milei’s reforms aim to improve fiscal solvency, economic growth, and the financial system’s robustness—key factors in obtaining the coveted rating. “I believe his popularity, which is at very high levels, will continue to grow this year, especially with the economy improving: people on the streets will strongly feel the positive momentum in the country,” he stated. Such momentum could further accelerate capital flows to Argentina, positioning it as a leading investment destination in Latin America.

The investor also highlighted significant economic progress in 2024, such as increased exports, the accumulation of $21 million by the Central Bank, and the reduction of inflation and country risk. According to him, Argentina is transitioning from a phase of macroeconomic stabilization to sustained growth, setting the stage for higher capital flows to Argentina.

Optimistic Economic Projections

Citrone projected economic growth of over 6% this year, accompanied by inflation below 19%—figures he described as “phenomenal for the country.” He also anticipated the ruling party’s strong performance in midterm elections, which could facilitate the approval of new structural reforms.

“I believe productivity in Argentina will improve, and there’s a clear focus on achieving this,” said the Discovery founder. Among the structural reforms that could be implemented, he mentioned the possibility of deeper labor reforms to enhance the country’s competitiveness in international markets.

Regarding external debt, Citrone highlighted that Argentine bonds, such as the Global 29 and 30, could continue reducing their yields to around 8%, a significant drop from the previous year’s levels. “It’s hard to find a spread compression like that anywhere else in the world,” he remarked.

The Impact of Foreign Exchange Controls

One of Citrone’s bets is on eliminating foreign exchange controls, which, he argued, could lead to a massive influx of capital flows to Argentina. “It will amount to multiple billions of dollars. $20 billion wouldn’t surprise me,” he said, referring to a combination of foreign direct investment and inflows into financial assets.

The investor noted that the current exchange rate does not hinder the competitiveness of Argentine exports. “Argentina remains competitive at this exchange rate. It’s about reducing costs and increasing productivity. You don’t grow your exports by $27 billion in a year if you have an issue with the exchange rate,” he asserted.

Citrone supported the government’s decision to reduce the pace of the crawling peg from 2% to 1% monthly. “It was an excellent decision, as it will further help reduce inflation and lower inflation expectations,” he said.

Discovery’s Winning Bets in Argentina

Discovery Capital Management’s portfolio in Argentina, representing 60% of its exposure in Latin America, delivered a 52% return in 2024 thanks to strong bets on Argentine assets. Key positions included:

• Grupo Financiero Galicia (GGAL): The fund’s most prominent position, with a 340% increase in 2024. “Galicia is a major beneficiary of macroeconomic stability and the growth we’ll see in credit,” said Citrone, who expects an additional 40% appreciation potential in 2025.
• Vista Energy (VIST): A 79% rise last year.
• YPF (YPF): Up 164%, with further growth prospects in 2025.
• BBVA Argentina (BBAR): Recorded a gain exceeding 400%.
• Adecoagro (AGRO): The only position that ended the year in the red, with a 12% decline. Despite this, Citrone defended the investment, arguing it is “a very low-risk investment with an annual return of 7–10% to shareholders.”

“Galicia is our largest position globally. We believe the growth capacity in credit is enormous, and bank profitability should increase dramatically,” he emphasized.

Regional Perspectives

In contrast to his optimistic view on Argentina, Citrone was cautious about Brazil, where he maintains short positions. “It’s about leadership. And I’m uncomfortable with the leadership I currently see in Brazil,” he said.

The investor predicted a political shift in the neighboring country during the 2026 elections, where he expects a center-right candidate to win. In the meantime, he warned of fiscal risks and a negative impact on economic growth.

On the other hand, Citrone expressed optimism about the United States’ economic prospects and its impact on Latin America. “I believe the U.S. economy will maintain solid growth, which will benefit the Americas and the Western Hemisphere,” he concluded.

More than 70 Mexican companies now operate in Colombian territory, showcasing a significant and growing economic partnership between the two nations. According to ProColombia, foreign direct investment (FDI) flows from Mexico to Colombia between 2000 and the first half of 2024 accumulated to USD 7.616 billion. This positions Mexico as the eighth-largest source of foreign investment for Colombia globally and the second-largest within Latin America, as Colombia’s Central Bank (Banco de la República) reported.

This robust investment flow is primarily driven by Mexican companies undertaking strategic projects that have significantly contributed to the growth of key sectors in Colombia. These sectors range from pharmaceuticals and construction materials to food and telecommunications, highlighting the diversification and impact of Mexican investment in Colombia.

Notable Mexican Investments in Colombia

One of the most prominent recent investments comes from the Mexican pharmaceutical multinational Sanfer. In 2007, Sanfer initiated its Latin American expansion strategy in Colombia by acquiring Laboratorios Bussié. In May 2024, the company inaugurated a new production plant in Bogotá with an investment of USD 35 million. This state-of-the-art facility, designed with advanced technology and sustainable practices, can triple the annual production of medicines. The plant not only strengthens the domestic supply of pharmaceuticals but also establishes Colombia as an export hub targeting markets such as Chile, Argentina, and Mexico.

In addition to its economic contributions, Sanfer’s Bogotá plant underscores its social impact, creating 950 direct jobs—70% of which women hold—and demonstrating its commitment to Colombia’s social and economic development. The company’s efforts align with global trends toward inclusive growth and gender equity in the workplace.

The ceramic coatings sector has also seen significant Mexican investment in Colombia, led by Grupo Lamosa, the second-largest ceramic tile manufacturer in the world. Since 2017, the company has invested over USD 50 million to modernize its two Colombian plants and expand production capacity. Strategic acquisitions, such as Eurocerámica in 2020 and Cerámica San Lorenzo in 2016, have complemented these initiatives. By enhancing the availability of high-value-added products in Colombia, Grupo Lamosa has solidified its position as a key player in the country’s construction materials industry.

Expanding Mexican Presence in Colombia

The arrival of Farmacias Similares, known in Colombia as Droguerías del Dr. Simi, marks another milestone in Mexican investment in Colombia. With its initial presence in Bogotá, the chain has made affordable, high-quality medications more accessible to Colombians. Moreover, the initiative supports local employment and extends aid to vulnerable communities through the Dr. Simi Colombia Foundation. This dual focus on economic and social contributions highlights the holistic approach Mexican companies bring to their operations in Colombia.

In addition to these recent successes, established Mexican corporations continue strengthening their foothold in Colombia. Grupo Bimbo, Cemex, Femsa, América Móvil (Claro Colombia), Cinépolis, Aeroméxico, and Sigma Alimentos are among the prominent names actively reinvesting their profits in the country. Their activities span diverse sectors such as food production, telecommunications, transportation, and entertainment, further diversifying the economic relationship between the two nations. 

ProColombia’s Role in Promoting Investment

ProColombia, the government agency responsible for promoting tourism, foreign investment, non-mining energy exports, and Colombia’s international image, plays a pivotal role in fostering these economic ties. The agency works to position Colombia as an attractive destination for investors and multinational companies, facilitating their entry and expansion in the national market. ProColombia also supports Colombian exporters in establishing global business connections.

Carmen Caballero, President of ProColombia, emphasized the transformative impact of Mexican investment in Colombia. “Mexican investment transforms territories, generates employment, fosters sustainability, and strengthens competitiveness in key sectors. This mutual commitment positions Colombia as a strategic destination for investment in Latin America,” she stated.

Mateo Gómez, director of ProColombia’s commercial office in Mexico, echoed this sentiment, highlighting the deepening partnership between the two nations. “Mexican investment in Colombia reflects the trust and commitment of our nations to building a shared future. ProColombia Mexico supports Mexican investors by providing strategic information, facilitating connections with local partners, and guiding them through every stage of their projects in Colombia. We are here to ensure that every investment translates into success and mutual benefits for both countries,” he said.

A Collaborative Future

Mexico and Colombia’s collaborative efforts extend beyond economics, fostering cultural and social ties that strengthen their bilateral relationship. Mexican companies’ emphasis on sustainability, innovation, and community engagement aligns with Colombia’s broader development goals. These shared values create a foundation for further collaboration, paving the way for new investments that can address emerging challenges and opportunities.

As Mexican companies continue to expand their operations in Colombia, the bilateral partnership is set to grow even stronger. The investments enhance Colombia’s industrial and economic landscape and contribute to regional integration within Latin America. ProColombia’s role in facilitating these investments ensures that both nations reap the benefits of a dynamic and mutually beneficial relationship.

Conclusion

In conclusion, the growing presence of Mexican investment in Colombia underscores the depth and potential of the bilateral relationship between the two nations. Mexican companies have become integral to Colombia’s industrial and economic growth through strategic investments, innovative projects, and a commitment to social and economic development. As sectors like pharmaceuticals, construction materials, and telecommunications continue to thrive, the partnership between Mexico and Colombia serves as a collaboration model in Latin America. With ongoing support from agencies like ProColombia and the shared vision of both nations, the future of Mexican investment in Colombia promises even greater opportunities for mutual prosperity and regional integration.

Foreign investment projects in Chile reached a record-breaking $56.234 billion in 2024, marking a 68% increase compared to 2023, according to InvestChile, the nation’s foreign investment promotion agency. This milestone represents the highest figure since the agency’s establishment and underscores Chile’s growing appeal as a hub for international business. The portfolio includes 474 projects at various stages of development, with the potential to create over 21,000 direct jobs, reflecting a significant boost to the nation’s economy.

Investment in Development and Job Creation

Of the total investment, $14.46 billion corresponds to projects already underway in Chile. These 113 initiatives have generated 4,605 high-quality formal jobs. This accomplishment highlights the practical materialization of foreign investment projects in Chile and the nation’s capacity to support their implementation.

According to Karla Flores, Director of InvestChile, the growth in foreign investment is mainly driven by green hydrogen projects, which alone accounted for $25.617 billion by the end of the year. “Chile has positioned itself as a major player in green hydrogen on the global stage,” Flores said. The country’s strategic promotion in key international markets and favorable conditions for clean energy production have proven pivotal.

A Leading Nation in Green Hydrogen

Green hydrogen projects represent Chile’s commitment to addressing global climate change. The nation’s natural resources and unique geographical features make it ideal for producing sustainable fuels. “These numbers demonstrate the success of our strategy and Chile’s leadership in sectors like mining and technological infrastructure,” added Flores.

The substantial focus on green hydrogen reflects the global transition toward renewable energy sources. As international companies increasingly prioritize environmentally sustainable projects, Chile’s emphasis on green energy has enhanced its competitiveness in attracting foreign investors.

Geographic Distribution of Investments

A notable 88% of foreign investment projects in Chile, equivalent to $49.468 billion, are located outside the Metropolitan Region. This geographic diversification underscores the government’s efforts to drive economic development across the country, benefiting regions traditionally with lower access to capital and employment opportunities.

Sectors Driving Foreign Investment in Chile

Three key sectors accounted for the majority of foreign investment projects in Chile:

• Energy: Investments reached $36.817 billion, marking an impressive 131% growth compared to 2023.
• Mining: With $8.649 billion, this sector remains vital to Chile’s economy, registering a 6% increase.
• Global Services: At $5.4 billion, this sector is critical for generating employment, contributing 8,325 potential jobs by the end of 2025.

The infrastructure sector also showed remarkable growth, with investments surging 130% to $3.39 billion. Meanwhile, the food industry attracted $1.265 billion, a 41% rise from 2023. These trends demonstrate the broad appeal of Chilean foreign investment projects, spanning traditional and emerging industries.

Employment Opportunities

Foreign investment projects in Chile have created significant employment potential, especially in key industries:

• Global Services: 8,325 potential jobs, a 3% increase from 2023.
• Mining: 5,882 potential jobs, representing a 22% rise.
• Energy: 3,304 potential jobs, a remarkable 157% growth.

This surge in employment opportunities reflects Chile’s alignment of its investment strategies with global trends, emphasizing sustainability, innovation, and quality job creation.

United States: The Largest Investor

Among the countries contributing to foreign investment projects in Chile, the United States leads with $20.51 billion, reflecting a 107% increase from the previous year. Austria ranks second with $11.052 billion, a significant leap from just $52 million in 2023. This dramatic growth is primarily attributed to the $11 billion HNH project by Austria Energy and Ökowind, in collaboration with Copenhagen Infrastructure Partners from Denmark.

Canada is third with $6.275 billion, marking an 18% year-over-year increase. These figures highlight the confidence of major economies in Chile’s investment climate, particularly in sectors aligned with energy transition and technological advancements.

New Investment Sources

2024 also marked the entry of new players into Chile’s investment landscape. Saudi Arabia contributed to InvestChile’s portfolio for the first time with a potential investment of $1.4 billion. This development broadens the diversity of investment sources, reinforcing Chile’s position as a global destination for innovative and high-impact projects.

Transition to Renewable Energy

Chile’s transition to renewable energy has become a cornerstone of its foreign investment strategy. The country’s focus on green hydrogen and solar and wind power advancements aligns with global efforts to combat climate change. These initiatives have attracted significant foreign capital and set a benchmark for sustainable development in Latin America.

Government Support for Investment

Chile’s government, led by Minister of Economy Nicolás Grau, has fostered a favorable investment environment. “Chile continues to stand out as an attractive investment hub in Latin America,” Grau stated. Through partnerships with InvestChile, the government has actively promoted projects contributing to the nation’s economic growth and energy transition.

By prioritizing sustainability and innovation, Chile has solidified its reputation as a reliable partner for foreign investors. The country’s robust regulatory framework, skilled workforce, and strategic location further enhance its appeal.

Looking Ahead

The record-breaking $56.234 billion in foreign investment projects in Chile in 2024 underscores the nation’s resilience and adaptability. As the global economy increasingly prioritizes sustainability and innovation, Chile’s strategic investments in green hydrogen and renewable energy position it as a leader in transitioning to a low-carbon future.

Chilean foreign investment projects are driving economic growth, creating quality jobs, and fostering regional development. With its commitment to sustainability and innovation, Chile is set to remain a key destination for foreign capital in the years to come.

Natalia Cáceres, Executive Secretary of the National Council of Export Maquila Industries (CNIME), highlighted the growing importance of the maquila sector in driving economic development in Paraguay. In a recent interview, Cáceres emphasized the arrival of new companies, the expansion of established industries, the capture of new markets, and the sector’s positive impact on generating formal employment and supporting social and labor reintegration programs.

“The maquila regime is consolidating as a driver of economic and industrial growth for Paraguay, attracting foreign investment, generating quality jobs, diversifying export offerings, and contributing to social reintegration,” Cáceres stated. This model has diversified the economy and strengthened the country’s position in international markets.

Growth of the Maquila Sector

In terms of growth, maquila industries in Paraguay experienced an approximate annual increase of 22%. The year 2024 closed with over USD 1.1 billion in exports and the creation of nearly 30,000 new jobs tied to the sector. This performance underscores the importance of the maquila regime as a strategic pillar of economic development in Paraguay.

The trade balance for maquila industries was also notably positive in 2024, with exports exceeding imports by 94%. This reflects the competitiveness and high added value of products manufactured in Paraguay under this regime.

Currently, more than 300 companies across various sectors operate under the maquila program, creating a significant impact on the local economy. In 2024, the industry successfully exported to 15 new markets, furthering its internationalization and opening new opportunities for Paraguayan industries.

Diversity in Maquila Production

The maquila industry in Paraguay spans a wide range of sectors, making it a diversified driver of economic development. Among the most notable products are auto parts, textiles, footwear, chemicals, home appliances, and electronic devices. Additionally, sectors like food and beverage processing play a significant role in the maquila regime. This diversity fuels economic growth and generates specialized employment in various fields.

Products manufactured under the maquila regime are recognized for their high quality and competitiveness, enabling them to meet the demands of strict markets in North America, Europe, and Asia. For example, major international automotive manufacturers utilize auto parts produced in Paraguay, while exported textiles and footwear are acclaimed for their design and premium finishes.

Origins of Investments

The success of the maquila regime in Paraguay is also tied to the attraction of foreign direct investment. Investors from Brazil, Argentina, the United States, and China have found Paraguay appealing due to its tax incentives, macroeconomic stability, and skilled workforce. The legal framework of the maquila regime offers benefits such as tax exemptions on exports and the importation of raw materials, which has been key to attracting foreign companies.

Brazilian companies, in particular, have led investments in the sector, leveraging geographical proximity and trade agreements that facilitate the export of products to regional markets. Meanwhile, U.S. and European companies have invested in high-tech and advanced manufacturing sectors, contributing to knowledge and technology transfer within Paraguay.

Job Creation and Training

One of the standout aspects of the maquila sector is its ability to generate formal, quality employment. According to Cáceres, many maquila companies offer training programs for their staff, enabling workers to acquire technical skills and improve their long-term career prospects. These initiatives benefit employees and enhance companies’ competitiveness by fostering a highly skilled workforce.

The impact of maquila on Paraguayan society is also reflected in labor and social reintegration programs promoted by various companies in the sector. These initiatives target vulnerable groups, including youth, women, and individuals seeking to re-enter the workforce, promoting inclusion and social development.

Future Prospects

With sustained growth and a significant impact on the national economy, the maquila sector is positioned as a strategic pillar of economic development in Paraguay. Product diversification, attracting new investments, and expanding into new markets will remain key factors in consolidating its role as an economic driver.

The maquila regime represents an opportunity for industrial growth, job creation, skill development, and improved quality of life for thousands of Paraguayans. In this context, Paraguay positions itself as an attractive destination for investment and international trade, with the maquila sector leading toward a more prosperous and sustainable future.

By leveraging the maquila regime, Paraguay enhances its reputation as a regional leader in economic competitiveness, further solidifying its foundation for long-term economic development in Paraguay.