Despite latent risks in the fiscal area, the Central Bank estimates growth of 2.4% for GDP, helped by an increase in consumption and low inflation.
Authorities at the Central Reserve Bank of El Salvador warned that the growth forecast could be affected by possible increases in interest rates or in international oil prices.Political polarization and the delicate fiscal situation also constitute threats to the expected growth.
Growth and the external position have been boosted by low oil prices and strong remittances, while the fiscal deficit had declined. However, progress on social objectives is lagging. There are downside risks from global uncertainties and domestic policy constraints.
From the press release by the IMF:
On August 22, 2016, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Guatemala, and considered and endorsed the staff appraisal without a meeting.2
The Morales administration intends to raise the GDP growth rate from 3.8% in 2016 to 5.1% in 2021 and increase the rate of annual investment from 3.9% to 7.4% in the public sector and 4, 5% to 7.5% in the private sector.
The country continues to experience significantly lower growth than its neighboring countries in a context of low investment, high emigration, low competitiveness and political paralysis, and with significant fiscal pressures.
From the IMF report:
Main policy issues
- Raising potential growth will require far-reaching structural reforms to foster competitiveness and investment, supported by measures to reduce crime and regulatory uncertainty.
The government projects that the Panamanian economy will grow at an average annual rate of 6.3% over the next five years.
From the Ministry of Economy and Finance:
The Cabinet Council gave its approval to the Ministry of Economy and Finance (MEF), of the Medium Term Fiscal Framework 2017-2021, as set out in Article 18 of Law 34 of 2008, better known as Fiscal Social Responsibility Law.
The Guatemalan economy grew by 4.1% during the last quarter of 2015, driven mainly by buoyant banking and insurance industries.
From a statement issued by the Bank of Guatemala:
In the fourth quarter of 2015 economic activity measured by the estimated real gross domestic product showed growth of 4.1% similar to that observed in the same quarter of the previous year, driven mainly by the dynamism in private consumption spending.
Key representative/s from the Guatemalan Exporters’ Association last 13-15 October attended the 8th TPO Network World Conference to exchange ideas and best practice around stimulating export-led economic growth and meeting the urgent challenges in the sector.
PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
Operates in Nicaragua
Phone: (505) 2270 6400
Caribbean-Central American Action (CCAA) is a private, independent organization that promotes private sector-led economic development in the Caribbean Basin and throughout the Hemisphere.
Operates in Panama, Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica and Caribbean Community
Phone: (202) 331-9467