Foreign Direct Investment sees seven per cent decline
There was a seven per cent decline in Foreign Direct Investment (FDI) to Jamaica in 2014 when compared to the previous year.
The United Conference on Trade and Development’s 2015 World Investment Report launched in Kingston yesterday shows the country attracted $64 billion in FDI.
The fall in the figure is largely attributed to delays in the implementation of some major projects, as well as an increase in investment funding sourced locally.
However, Diane Edwards, the President of Jamaica Promotions Corporation (JAMPRO), is insisting the country still performed creditably.
She has noted this is particularly so when the country’s performance is checked against double digit inflow declines regionally and globally.
The Report shows that global FDIs fell by 16 per cent to US$1.3 trillion, and Latin American and Caribbean inflows, by 14 per cent to US$149 billion in 2014, relative to the previous year.
These fall-offs have been largely attributed to lingering effects of the 2008/09 global economic downturn, and in the case of Latin American and Caribbean countries, factors such as reduced cross-border mergers and acquisitions.
Meanwhile, Edwards says while FDIs declined, Local Direct Investments (LDIs) played a much greater role in Jamaica’s investment climate during 2014.
She says LDIs for the 2014/15 fiscal year totalled $27.1 billion, on major projects in sectors such as Agriculture, Business Process Outsourcing, Information and Communications Technology and Mining.
She notes that this represented a $9.1-billion increase over fiscal year 2013/14.