Friday, October 19, 2007

Foreign direct investment in Costa Rica continues to grow

(Tico Times) - Foreign direct investment in Costa Rica shot up 71% in 2006, according to a study released yesterday by the U.N. Conference on Trade and Development (UNCTAD).

Known as the World Investment Report 2007, the study found that foreigners directly invested $1.469 billion in Costa Rica last year.

That puts Costa Rica in fourth place in the region as far as per-capita foreign direct investment, behind Panama, Chile and Uruguay.

The United States remains Costa Rica's main investor, with 47% of foreign direct investment coming from there. Another 23% came from Canada and 5% from Colombia.

The report says the increase in investment in Costa Rica is “partly due to a large sale in the financial sector and partly to rising foreign direct investment in tourism.”

Foreign direct investment in Costa Rica has grown by leaps and bounds since 2004, when it reached $617.3 million and was growing by single digits.

Graphic's translation: Flows of Foreign Direct Investment. US Dollars (in millions)

Note: It's because of news like these that I had a hard time understanding why an important amount of Costa Ricans found it so hard to accept that the Central American Free Trade Agreement had to be approved.

Costa Rica has continued to grow thanks,among other things, to the foreign investment. Had CAFTA not been approved this would have been in danger. Now, the key is to find a way to distribute to the lower classes the wealth that this investment will bring.

Costa Rica's middle class is dissapearing (even the USA has this problem) and that is a threat to our social security. This issue must be dealt with quickly by this and the upcoming governments before we reach the level of other Latinamerican countries where the middle class is practically non-existant.

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