BRAZIL
The resilient powerhouse of Latin America
As of 2024, Brazil's economic landscape presents a mix of opportunities and complexities. The country has performed better than expected, with real GDP growing by an annualized 5.9% between the first and second quarter of the year and up 2.8% from the previous year1. This strong performance came despite relatively disappointing output in the agricultural sector. Consumer spending and business investment were notably strong, contributing to robust economic growth.
Brazil's population has reached 212.6 million as of July 2024, representing a 4.7% increase from two years prior. This demographic growth underscores Brazil's significance as a major consumer market. However, projections indicate that the population will peak at 220 million by 2041 before declining, with an aging population becoming more prominent.
The Banco Central do Brasil has made progress on inflation, allowing it to lower rates from 13.75% in July 2023 to 10.5% in May 2024. However, inflation concerns persist, with the latest forecast for 2024 at 4.63%, slightly above the government's target range. The central bank remains committed to bringing inflation back to target, balancing this goal with supporting economic growth.
Despite these challenges, Brazil's economic potential remains strong. The Ministry of Finance has revised its economic outlook for 2024, predicting a 3.3% growth in GDP. This optimistic forecast reflects improvements in various economic sectors and demonstrates Brazil's resilience in the face of global economic uncertainties. While Brazil has made strides in economic growth, social inequality remains a pressing issue. The country continues to face challenges in addressing the gap between urban and rural areas, as well as between different regions. Nevertheless, Brazil's economic potential, strategic location, and abundant natural resources continue to make it an attractive destination for global investors and companies with international ambitions.
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MEXICO
A new beginning in the heart of the Americas
Mexico, strategically situated between the Americas, Asia, and Europe, remains a significant economic force in Latin America, second only to Brazil. Its economic strength is bolstered by proximity to the U.S. market, which enhances its role as a manufacturing and export hub. This is supported by substantial oil, gas, and mineral reserves. A youthful population and a vibrant tourism industry further enhance its attractiveness to investors.
In 2024, Mexico is expected to achieve a growth rate surpassing its 30-year average, despite challenges like high interest rates and slower U.S. growth. Inflation is projected to fall from 8.7% in September 2022 to 4% by the end of 2024, allowing potential monetary policy easing by the central bank1. However, domestic demand has weakened, leading to a revised growth forecast of 1.2% for 20245. The fiscal deficit is expected to widen due to increased spending on pensions and public works.
Politically, Mexico held elections in June 2024, resulting in a decisive victory for Claudia Sheinbaum of the National Regeneration Movement (MORENA). She will become North America's first female head of government in October 2024. The MORENA coalition secured majorities in both houses of Congress, facilitating potential constitutional amendments without cross-party support.
Despite economic stability and growth prospects, Mexico faces significant challenges. These include upgrading infrastructure and addressing social inequalities between urban and rural areas as well as northern and southern states3. Human rights issues persist under President Andrés Manuel López Obrador's administration, including criminal violence and abuses against migrants. While poverty rates have slightly decreased during López Obrador's term, extreme poverty levels have not significantly improved.
Overall, while Mexico presents opportunities for investment and economic growth, it must navigate complex political dynamics and persistent social challenges to sustain its development trajectory.
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MOROCCO
The door to Africa
Morocco's economic momentum remains strong, solidifying its position as one of Africa's most dynamic economies and Europe's preferred gateway to the continent. While growth moderated in 2023, Morocco's overall economic outlook remains positive. The IMF projects GDP growth to reach 2.8% in 2024, with a rebound to 4.4% expected in 2025.
Since 2021, Morocco's government has implemented ambitious reforms focused on expanding social protection, creating jobs, and reducing economic disparities. The country has made significant strides in generalizing health insurance coverage and implementing direct social aid programs benefiting millions of families.
King Mohammed VI, who ascended to the throne in 1999, has overseen a period of substantial socio-economic transformation. Under his reign, Morocco has seen notable improvements in human development indicators, with life expectancy increasing by nine years and income per capita doubling in real terms between 1998 and 2023. The National Initiative for Human Development, launched in 2005, has mobilized significant investments in rural infrastructure, education, and healthcare.
Several factors are expected to drive future economic growth.
Morocco has improved its business environment, enhanced infrastructure, and increased investment in export-oriented industries. The country has become Africa's leading automobile exporter and integrated into global aerospace value chains9. Additionally, Morocco is pursuing an ambitious green energy transition, committing to reduce carbon emissions by 45% by 2030 and achieve net-zero by 2050.
Despite these achievements, challenges persist, including youth unemployment and regional disparities. To address these issues, Morocco is implementing a concrete roadmap for employment promotion and accelerating the implementation of advanced regionalization. As Morocco continues to navigate global economic headwinds, its focus on structural reforms and economic diversification positions it well for sustained growth and development.
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SLOVENIA
Simplicity, credibility and efficiency
Slovenia, the hidden gem of Europe offers a strategic position at the heart of the old continent. Its excellent transport and ITC infrastructure, its value chains, industry clusters and centers of excellence make this small country a big business magnet. Investors keen on locating their operations at the heart of the market with 500 million consumers will find Slovenia’s international commercial contacts and the land-sea-air transport system ideal.
The country joined the European Union and NATO in 2004 and adopted the euro in 2007. The center-right and Euroskeptic Slovenian Democratic Party (SDS) won the most seats in June 2018 parliamentary elections but fell short of a majority. With its excellent infrastructure, well-educated workforce, and strategic location between the Balkans and Western Europe, Slovenia has one of Central Europe’s higher per capita GDPs. Despite political uncertainty, the economy is registering strong growth, powered by exports.
A reputed corporate culture of transparency and accountability, observance of international technical standards, personal integrity and company loyalty make investing easy ever since the first big international companies established their operations in Slovenia. Investor confidence thrives on legal and institutional reforms designed to facilitate investment. Staring a company is straightforward and easy through single-access points to register a limited liability company, obtain a construction permit and carry out any other administrative procedures.
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IRELAND
The emerald isle of all treasures
Home to over 1,000 international companies, Ireland remains one of the most preferential global locations for investment. The emerald isle posses one of the most favorable tax regimes in the world attracting hundreds of foreign companies worldwide. Ireland is also well known for its pro-business environment and young, well-educated, talented workforce. Blending this with the plummeting costs in property, rents, services, construction and labor, the availability of attractive business incentives and grants, and you can understand why investment into Ireland continues to pour.
Ireland has attracted and continues to attract well-known global companies as well as emerging companies from a wide variety of sectors, including ICT, pharma and life sciences, financial services and more recently social media and online gaming.
In addition to manufacturing, some of the sectors that are frequently thriving in the country are: sales and licensing, IP management, R&D, supply chain management, shared services, finance and of course tourism.
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ICELAND
Nordic power
Often called the Land of Ice and Fire, a nation where volcanoes and geothermal heat have made their mark on the landscape, Iceland, the lonely island in the middle of the North Atlantic, has become a popular spot for companies, tourists and Hollywood blockbuster films.
An Ideal Location for Investors Iceland is world-renowned for its economic advancement, social stability, and technological innovation, and is continually ranked as one of the outstanding societies on Earth.
Iceland has high quality of life; it is a modern, growing economy, politically stable and internationally competitive. The nation is young, educated, multilingual and enjoys high living standards with a thriving cultural scene. The labour market is highly flexible with people willing to adopt new technologies. Iceland´s nature is spectacular and the source of both inspiration and green competitively priced energy.
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BARBADOS
Business in paradise
While undeniably renowned for its whimsical beaches, Barbados is an island that has it all. In addition to fine powdery sand and dazzling turquoise coves, a Unesco World Heritage–listed Caribbean business capital like Bridgetown makes this country paradise both for business and pleasure.
Barbados enjoys a positive image in the marketplace as a reputable International Business Centre of choice and has been successfully attracting Foreign Direct Investment for decades, particularly from Canada and the USA.
For many years, the country has been recognized as the 3rd leading destination for Canadian direct investment abroad, garnering Cdn$68.3 billion of direct investment from Canada at the end of 2016. Barbados complies with OECD standards for transparency and exchange of information, standards which Barbados expects of all corporations active in its jurisdiction.
Companies looking to thrive in a highly competitive global marketplace invest in this island nation to capitalize on the business-friendly environment, strong human capital, high-quality infrastructure, investment protection, and good quality of life.
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MALTA
The Mediterranean in your hand
Malta is one of the most vibrant business and tourist destinations right at the heart of the Mediterranean. Respected as a well-known and stable financial and business hub, Malta's steady economy and robust reputation make it an attractive investment terminus for investors across the world. The Maltese archipelago lies virtually at the center of the Mediterranean, 93 km south of Sicily and 288 km north of Africa. The archipelago consists of three islands: Malta, Gozo and Comino with a total population of over 400,000 inhabitants.
Malta is the main island and the cultural, commercial and administrative center. Gozo, the second largest is more rural, known by fishing, tourism, crafts and agriculture. Comino, the smallest of the there is largely uninhabited. With superbly sunny weather, attractive beaches, a thriving economy and 7,000 years of intriguing history, the countries’ potential is infinite.
Even though the EU’s smallest member state, Malta has been one of the most exciting countries to watch and invest in. Over the years, the island’s frontrunners have been on a mission to make Malta a magnet for financial services. It was their vision to transform the island into a beacon for international business and to develop a model economy, which has been among the best in the EU.
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GUATEMALA
Central America's emerging nation
Guatemala is a country of extraordinary cultural and natural richness with a privileged geographical location. From January to September 2019, the country received $671 million in foreign direct investment, 6% more than in the same period in 2018 making it one Central America’s preferred investment destinations.
Considered as the land of eternal spring, agriculture in Guatemala accounts for over 22% of the country's GDP as well as half of the 5 five million-person labor force. More specifically, some of the agricultural commodities produced in Guatemala include sugarcane, corn, bananas, coffee, beans, and cardamom.
Of these agricultural commodities, coffee, bananas, fruits and vegetables, as well as cardamom are exported to other countries. The majority of Guatemalan exports are sent to the United States as well as El Salvador and Honduras.
Guatemala holds the largest number of archaeological sites in the Mayan culture, surrounded by an impressive flora and fauna, which makes them the true lungs of Central America. The magic and Mystery of the Mayan world subsist in millenary cities such as Tikal, Yaxhá, Aguateca, Mirador, Quiriguá and Q’uma ‘ Rkaj among others.
In addition, it offers several possibilities of access from any part of the world, with two international airports: the Aurora, located in the capital city; And Mundo Maya, located in the Department of Petén.
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COSTA RICA
The time is now
The forever-green nation of Costa Rica enjoys a very stable political climate and economic development, providing visitors and investors with a tranquil setting for their stay. It is one of the few countries in the world with no army where stability, innovation and a proven international competitiveness have created the right climate for success.
With a proven track record of more than 100 years of solid democracy, economic and political stability, Costa Rica is unmatched as the top choice for investing in the region. Costa Rica is at the very center of the Americas, with ports in the Pacific and Atlantic coasts, and Free Trade Agreements that provide preferential access to 2/3 of the world's GPD and over 57 trade partners including USA and the EU. Costa Rica is also one of the only 3 countries in the Americas with an FTA with China. 93.9% of export goods are covered by FTAs and the country possess investment promotion and protection agreements with 14 countries. Costa Rica also provides the perfect combination of relaxation, adventure, culture, fine cuisine and wildlife. Visitors and investors will find in Costa Rica an adventure paradise set in the most beautiful natural and safe environment. It is also the home of four World Heritage sites certified by UNESCO. Although the country is small and it covers only 0.03 percent of the surface of the globe, it proudly shelters 5 percent of the existing biodiversity in the entire planet. Twenty six percent of the country is composed of conservation and natural protected territory.
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MADAGASCARAfrica's jewel for business
Recognised as one of the world's top ten hotspots for biodiversity, the Republic of Madagascar is an island nation off the southeast coast of Africa. Its main island is the fourth largest in the world. Madagascar, the Red Island, the Rainbow Island, the Eighth Continent, there are many names for the world's 4th largest island.
Madagascar is a member of the Southern African Development Community (SADC), COMESA (Common Market for Eastern and Southern Africa) and IOC (Indian Ocean Commission), regional free trade organizations totaling more than 600 million potential consumers. Investing in Madagascar will give investors access, in addition to the competitive advantages of the country, to these high-potential free trade zones.
Madagascar is endowed with potential mining, agricultural, energy and fisheries resources, which only need to be exploited. The uniqueness and richness of its biodiversity are also an asset for tourism investments. Madagascar is implementing significant legal, procedural and administrative reforms aimed at facilitating business practices and encouraging local and foreign investment. By 2019, more than 20 reforms have been implemented in the areas of business law, trade justice, import-export, business start-up, facilitation of credit and taxation. Various laws favouring investments have been promulgated, in particular the Law on Free Zones and Companies, which allows freehold companies to benefit from exemptions from customs duties and VAT on imports; and Income Taxes for the first 15 years.
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