Central American Economy: First Half of 2010

Central America may be directly impacted by the slowdown in the recovery of the world economy.

Thursday, September 2, 2010


For the time being, the region's measures of external and internal demand do not seem affected by the threat of lower growth rates for the economies of partner developed countries. Some central banks had raised their expectations but, in view of the risks, they are likely to revise their growth predictions back to original levels between 2.0% and 2.7%.

Risks to inflation have yet to appear, especially in countries with strategies to maintain it within limits. For the region as a whole, based on individual countries' national objectives, inflation is expected to end the year between 4.2% and 5.6%.

The gap in the region's balance of payments may not deteriorate as much as expected due to growth in imports being slower than for exports.

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FMI: Central America Outlook

October 2010

Slow recovery tied to a lagging U.S. economy, 3% growth in 2010 due to increased domestic consumption and rising remittances and international trade.

The countries in Central America are recovering gradually, led by a rebound indomestic demand (following its sharpcontraction in 2009), which has partly spilled over into imports.

Guatemala Aproved by IMF

September 2010

Guatemala’s economic recovery has continued despite the natural disasters that hit the country in May.

The Executive Board of the International Monetary Fund (IMF) today concluded the fourth review of Guatemala’s economic performance under a program supported by an 18-month Stand-By Arrangement (SBA).

$230 Million For El Salvador’s Economic Growth Plan

July 2010

Auhtorities from the World Bank and El Salvador reaffirmed the Bank's support to create job opportunities and reactivate the country.

This new financing includes $100 million to support the country’s recovery through sound economic and social policies that are vital to addressing the needs of Salvadorians, particularly the most vulnerable, by protecting its income and consumption, and ensuring its access to health services.

Slowdown in Recovery for Several Sectors

July 2010

After completing inventory restocking, the activity of Costa Rican manufacturers shows a slowing trend due to lack of demand.

Investment strategy analysts from ALDESA report that the Monthly Index of Economic Activity (IMAE) for May shows a 3.74% increase year-on-year. The data from the deseasonalized series indicate that economic activity peaked in March before slowing in subsequent months.

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