HKND and the Canal de Nicaragua

Abstract

Recently, the Foreign Direct Investment ("FDI") inflows into Nicaragua have begun to rise. In 2015, the FDI volume marks about six percent of GDP. In 2013, Nicaragua attracted USD 1.5 billion of FDI, a 17 percent increase from 2012, reaching the highest level in seven years. Nicaragua, however, has several weaknesses in attracting foreign investment, such as lack of data and information on local institutions and bureaucratic court system. In order to improve her foreign investment environment, Nicaragua is especially expected to further develop local infrastructure systems such like a pipeline connecting the opposite coasts, railways, free trade zones, deep water ports, and a new international airport. Another noticeable project is the Grand Canal being financed by Chinese investors.