Foreign direct investment (FDI) inflows to Jamaica grew in 2023 over 2022, despite a 9.9 per cent downturn in FDI into the Latin American and Caribbean region.

“FDI inflows into Jamaica were 18 per cent higher in 2023 than in 2022. However, the total amount, US$377 million, was below the average of the last decade, and the momentum of the pre-pandemic period has never been regained,” a report from the Economic Commission of Latin America and the Caribbean (ECLAC) outlined.

“Inflows were mainly concentrated in the service sector, which accounted for 85 per cent of the total and registered its largest inflows since 2016. The attractiveness of the service sector in Jamaica was also reflected in project announcements, which in the case of business services amounted to some US$10 million, 82 per cent higher than the amount announced in 2022,” it continued.

Bank of Jamaica data show that the island attracted the mammoth shares of FDI in the information and communication technology and tourism sectors – US$140.4 million and US$180.1 million respectively.

ECLAC highlighted two major projects in the hotel and tourism sector, both led by Spanish companies, with a combined estimated value of around US$ 420 million. Additionally, it pointed out the acquisition of Industrial Gases Limited by Trinidad and Tobago-headquartered Massy Holdings Limited.

However, the value of mergers and acquisitions in Jamaica was 91 per cent lower in 2023 than in the previous year.

Across the region, powerhouse economies Brazil and Mexico saw 14 and 23 per cent contractions in FDI. Peru had a 65 per cent drop in inflows.

On the other hand, Argentina and Chile experienced significant increases.

In Central America, Costa Rica and Honduras received the highest growth in FDI. The Dominican Republic with a 7 per cent increase and Guyana’s 64 per cent rise in FDI were the most notable in the Cariforum region.