According to the report, the reactivation of investments in 2021 occurred in all subregions. After a significant drop in the first year of the pandemic, investment inflows to Central American countries recovered in 2021.

Overall, the sub-region received Foreign Investment inflows that were equivalent to five times those received in 2020 and totaled US$10 million, 76% of total inflows in Latin America and the Caribbean.

In El Salvador, Foreign Direct Investment inflows in 2021 were 11.7% higher than in 2020 and reached US$313 million. With this increase, the level of inflows still remains below that recorded in the two years prior to the pandemic.

Inflows from capital contributions and reinvestment of earnings increased significantly overall, totaling US$699 million in 2021. However, negative inflows from intercompany loans resulted in a lower balance.

The growth was explained by higher IED inflows in the services sector, which accounted for 79% of inflows, mainly directed to financial and insurance activities and, secondly, to trade, which offset lower inflows in manufacturing.

Translated by: A.M