Guatemala companies expecting drop in investments

The companies are less prone to invest, increase their production or hire more employees in the next six months.

Wednesday, October 1, 2008

This is according to the 38 Business Survey by the Association for Economic and Social Investigation (Asies) for the month of July in which 855 large, medium and small companies were surveyed with a confidence of 95% and a margin of error of +-6.35%.
Even though a slight improvement can be observed in comparison to the previous survey, most of the companies report lower production and a decrease in investment in supplies and equipment, and salaries continue to drop. This leads one to think that the companies are responding to the increase in the cost of raw materials and supplies by freezing salaries and the payroll. 70% of the companies reported that they have frozen or reduced salaries expenses.

More on this topic

Costa Rica and the Effects of an International Crisis

September 2011

A report by Aldesa analyzes the effects for Costa Rica of a potential international crisis.

According to Aldesa:

During this week the market has been permeated by an air of positivity due to expectations that European authorities will solve the problem of the debt crisis. However, if more events occur, there would still be risks for the global economy that could trigger a slowdown in the U.S. and Europe.

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.

Cepal warns of smaller growth in Guatemalan economy

August 2008

After reaching a growth of 5.7% in 2007, the economy suffered a strong slowdown to the point where CEPAL is projecting a growth of 4.3% for 2008 and 4.0% in 2009.

The slowdown of the economy comes with an increase in inflation, which means there will be an increase in the monetary policy interest rates, and this will in turn cause the growth of the Gross Domestic Product (GDP) to shrink.

Guatemala: Modest growth anticipated for 2008

August 2008

The Association for Investigation and Social Studies (ASIES) carried out a moderate study of the local economy.

ASIES analyst, Carlos Gonzalez, pointed out that the unfavorable external climate resulting from the financial crisis, and the high price of oil and food - that started in 2006 and worsened in 2007, began to affect production activities during first semester of this year.

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