Analysts see adverse effects in the Salvadoran economy

Lower economic activity and the rise in interest rates are signs that the economy is being affected by the financial crisis in the US.

Friday, September 19, 2008

Some economic analysts warned yesterday that the effects from the financial crisis in the United States, which has been going on for over a year and which has gotten worse recently, are beginning to show up in the Salvadoran economy.
"We are going to see an impact in the economic growth, and in fact, the economic is growing slower according to the latest information from the Central Reserve Bank," Manuel Enrique Hinds, ex-minister of Finance, said yesterday.

More on this topic

Central America: External Vulnerabilities in Focus

October 2008

This special report examines the channels through which Fitch-rated sovereigns in this sub-region could be impacted by external shocks, the robustness of their various policy frameworks and the implications for creditworthiness of increasingly challenging international conditions.

The US financial crisis has spread across the international financial system.

The Lehman effect on Honduras

September 2008

"The global financial crisis has cause the main investment bank in the US to go bankrupt and will produce an strong impact on the Honduras' weak economy.

"Economic growth will stop, limiting access to credit and as a result the upward trend of interest rates will continue," the ex-president of the Central Bank of Honduras, Maria Elena Mondragon, warned.

The Lehman effect on Costa Rica

September 2008

Analysts and economic gurus are forecasting a dark future for the Costa Rican economy, after the failure of Lehman Brothers.

Things could get worse with the announce on Sunday of the sudden sale of Merrill Lynch, in which the Central Bank of Costa Rica probably has some assets, to Bank of America.

The Lehman effect on El Salvador

September 2008

The Lehman Brothers bankruptcy will not directly affect the Salvadoran financial and stock market, but analysts point to effects on the macro-economy.

The critical session experience on Monday at the New York Stock Market Exchange and the main stock exchanges in Europe, Asia and Latin America, due to the Lehman Brothers bankruptcy and buy out of Merril Lynch, have caused economists and experts to consider the effects and slight repercussions on the Salvadoran economy.

 close (x)

Receive more news about Economics

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Citrus Extract

CitroBio is a citrus extract wash for use throughout the entire food industry.
CitroBio is a citrus wash for sprouts, fruits,...

Stock Indexes

(Aug 16)
Dow Jones
0.12%
S&P 500
0.14%
Nasdaq
0.19%

Commodities

(Aug 16)
Brent Crude Oil
50.100
Coffee "C"
134.5
Gold
1,284
Silver
17.085