Forecast calls for drop in exports, tourism, investment and remittances

For Eduardo Lizano, President of the Central American Academy, the fast benefits that were expected from the DR-CAFTA may not materialize

Monday, October 13, 2008

Due to the financial crisis in the US and Europe, Central America can expect to see a drop exports, tourism, real estate investments, and remittances sent home by immigrant workers, he said in an interview with IPS.
In addition to this, expectations of quick benefits from the Central American and Dominican Republic Free Trade Agreement may not happen. "A lot of it won't happen or might happen, but on a lesser scalle," due to the drop in American consumption which makes it a "political-psychological," in Lizano's judgment. Lizano is one of the most prestigious economists in Costa Rica.

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February 2009: SECMCA Joint Report

February 2009

Inflation is declining and economic growth is decelerating - Analysis of the Executive Secretary of the Central American Monetary Counsel.

The excessive volatility in the financial markets and the low investor and consumer confidence levels are omens that the crisis is going to last, which is being translated into lower levels of consumption and investment and high unemployment rates in the most developed countries.

No Latin American country will be saved from crisis

October 2008

The financial crisis will affect all Latin American countries, despite the fact that they are better position than in the past to withstand it, said Juan Jose Daboub, general director of the World Bank.

Daboub, ex minister of Economy for El Salvador, will be in Panama next week and in his country of origin, where he will participate in the Ibero-American Summit.

The market must solve the financial crisis

October 2008

Four economists conclude that the market must fix itself in order to solve the financial crisis in the United States.

In the round table organized by the Academy of Central America, the economists Juan Muñoz, Eduardo Lizano, Isaac Castro, and Jorge Guardia shared their assessment of the causes and possible solutions for the crisis that began with the fall of property prices in the United States.

Why has this crisis occurred?

October 2008

The current financial crisis demonstrates how powerful and decisive the expectations of investors and the economic agents in general can be.

Expectations created a bubble in the prices of homes and properties in the US. By bubble I mean a price established mainly due to optimism (which can be irrational - even though there is experimental evidence that bubbles can be created when all the investors are rational - Vernon Smith).

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