FDI Ratings

FDI (Foreign Direct Investment) Magazine recently released its research as to which countries in the Caribbean and Central America offer the best investment environment. This year’s winner was Puerto Rico followed closely by Costa Rica and the Dominican Republic. FDI Magazine analyzed six areas to determine which country offered the best investment environment: economic potential, human resources, cost efficiency, quality of life, friendlily business environment, and investment attraction strategy.

Panama finished third in developing a coherent investment attraction strategy, with Costa Rica second and the Dominican Republic first. All three countries have developed very attractive free-trade zones that allow investors to operate in a 100% tax free business environment in areas such as income tax, construction tax and value-added tax.

The Dominican Republic was rated high in economic potential because of its large labor force which has propelled the economy to an average GDP growth rate of 7% between 2005 and 2008.

The Bahamas and Jamaica were rated as countries with the best infrastructure. Nicaragua and Haiti were rated highly in the category of cost effectiveness because of their low minimum wage and low industrial and office costs. Costa Rica was ranked in the top five in five categories: economic potential, quality of life, business friendliness, human resources and FDI strategy. Puerto Rico was strongest in business friendliness because of the high number of high-tech services, high-tech industries and knowledge-based sectors in its dynamic economy.