The Caribbean Saw An Increase In Foreign Direct Investment in 2023

The content originally appeared on: News Americas Now

By NAN Business Editor

News Americas, NEW YORK, NY, Fri. June 28, 2024: Foreign direct investment (FDI) to the Caribbean saw an increase in 2023 compared to 2022, a analysis of the 2024 World Investment Report data showed. Excluding offshore financial centers, overall FDI in the Caribbean was up by 6 percent, with most countries experiencing growth. The Dominican Republic saw a 7 percent increase in inflows year-on-year.

Over the past five years, foreign investments (FDI) have expanded across the region’s main economic groupings, with flows to the Caribbean Community (CARICOM) tripling compared to 2018.

In 2022, the CARICOM region recorded USD 1,768,365 in foreign direct investment, while in 2023 the total was USD 1,813,150.

Here is the tabulated data for foreign direct investment (FDI) inflows in 2023 and 2022:

Country2023 (USD)2022 (USD)British Virgin Islands1,068,2461,028,356Cayman Islands601,061572,927Dominican Republic56,37251,982Bahamas29,90428,502Jamaica18,76318,332Guyana10,27917,074Trinidad and Tobago9,9229,918Grenada2,1531,990Aruba4,5084,686Belize2,8122,679Saint Lucia2,0041,865Suriname1,8531,936Saint Kitts and Nevis1,7091,676Saint Vincent and the Grenadines1,6831,601Anguilla1,3821,528Curaçao1,2361,081Sint Maarten224190Montserrat4942

Globally, Latin America and the Caribbean attracted 19 megaprojects valued at more than $1 billion each in 2023, with 17 undertaken by investors outside the region. This helped bolster the rise in Caribbean FDI in 2023.

Global FDI fell by 2% to $1.3 trillion in 2023 amid an economic slowdown and rising geopolitical tensions, according to the report. The decline exceeds 10% when excluding large swings in investment flows in a few European conduit economies. The downturn in project finance affected sustainable development, with new funding for Sustainable Development Goals (SDGs) sectors dropping over 10%, particularly in agrifood and water. This hampers efforts to achieve the 2030 Agenda and calls for urgent policy action to revamp sustainable development finance.

The report emphasizes that business facilitation and digital government solutions can address low investment by creating a transparent and streamlined environment. It highlights significant growth in online services and information portals, noting that such tools also support broader digital government development, benefiting developing nations in particular.

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