Slow Economic Recovery in El Salvador

Of the Central American countries, El Salvador is the one which has the lowest post-crisis economic growth; a situation attributed to the lack of private investment and a poor response from the government.

Monday, November 22, 2010

Analysts polled by agree the country has not implemented public policies to promote key sectors such as tourism, investment and exports, as well as effective countercyclical tools.

The lack of anti-crisis policies hinders private investment needed to boost consumer spending, says analyst Rigoberto Monge, who adds that the government's mixed messages has caused uncertainty, as they speak of less incentives and more taxes, “That does not contribute to the growth of investment and exports," he says.

Miguel Lacayo, former minister of economy, indicates the need to "take advantage of newly adopted legal instruments to combat crime, because security is essential to restore confidence and attract private sector investment," published

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Panama as Seen by Moody's

October 2016

The agency highlights the country's macroeconomic stability, while noting a slight deterioration of fiscal indicators in recent years.

From a press release issued by Moody's:

New York, October 25, 2016 -- Panama's Baa2 rating with a stable outlook reflects the country's strong economy and its broad macroeconomic stability, says Moody's Investors Service.

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.

From Recession to Recovery: How Soon and How Strong?

April 2009

FMI: "Recessions associated with financial crises tend to be severe. Recoveries from such recessions are typically slow."

If such recessions are globally synchronized then they tend to last even longer and be followed by recoveries that are even weaker.

Countercyclical policies can be helpful in ending recessions and strengthening recoveries.

Fitch: Latin American Sovereign Outlook 2009

March 2009

Fitch expects that Latin America’s real GDP will contract by 0.9% in 2009, with Brazil’s economy stagnating at best and Mexico contracting by over 2%.

Latin American economies have recoupled with the crisis in the developed economies. Since September 2008, Latin American countries have been buffeted by stronger external headwinds, as evident from the fall in regional currencies and stock markets and from widening bond spreads.

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