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LatinNews Daily - 07 September 2021

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In brief: Guatemala hails rise in FDI

* Guatemala has attracted a total of US$815m in foreign direct investment (FDI) over the first eight months of 2021, providing some 14,000 jobs in the formal sector, according to a statement released by the economy ministry’s national competitiveness programme (Pronacom). In the month of August alone, seven new investment and reinvestment projects were confirmed, totalling over US$154m and generating 3,200 new jobs, according to Pronacom. This is up from US$140m in new projects announced for the previous month. Of the new projects announced for August, six corresponded to reinvestment in the sectors of energy, manufacturing, food, and diverse manufacturing. The economy minister, Antonio Malouf, has set a target of US$1.2bn in FDI for this year. According to the latest (5 August) report by the United Nations Economic Commission for Latin America & the Caribbean (Eclac), Guatemala received US$915m in FDI in 2020, 6% less than in 2019. Just under 70% of the US$915m consisted of investments in the service sectors, and 43% of these were in financial services. In terms of origin, the US, Colombia and the Central American subregion all contribute similar amounts, with 21% coming from the US and Colombia, and 20% from Central America. Of the total, 95% of Guatemalan FDI takes the form of reinvestment of earnings.