Central America has experienced significant transformations in the last 25 years, moving from war to peace, from dictatorship to democracy and from a state-led, agricultural-based model to a market-oriented, service-based one. Governments in the region are increasingly focused on attracting for- eign direct investment (FDI) and promoting new non-traditional agriculture and manufacturing exports.
Opportunities and Challenges for Investments after the Double Transition
This report discusses the changes in the region’s economic model and evalu- ates the opportunities for investment in a few strategic sectors. In the last decades, the region has developed new comparative advantages in non-tra- ditional agriculture, tourism and export processing zones, which will remain attractive sectors for investment in the future. The region has also started some significant infrastructure projects like the expansion of the Panama Canal and could benefit from higher investment in this area.