Perception of corruption cases and the execution of the government budget may be influencing perceptions of economic performance, which is also affected by factors such as fiscal issues, fuel prices, inflation, the exchange rate and interest rates.
Better results and stability in most productive sectors in the country are projected by the companies in the coming months.
The main private sector union started this year to measure business activity in the country, with the aim of determining the results achieved in the different productive sectors and short-term prospects in terms of investment and growth.
Amcham claims that the political crisis drove away investors who are now considering returning, "convinced that the message of the intention to strengthen the State is true."
Juan Pablo Carrasco, vice president of the Guatemalan Chamber of Commerce (AmCham), told Elperiodico.com.gt that "... An example of (better perceptions) is that on 23 September, a trade mission composed of 12 US franchises come to the country with the idea of settling there, which is a message of confidence to Guatemala and its market. "
The drop from 20% to 6% in the annual growth rate of bank lending to companies as of June, illustrates the direct link between confidence in the future and demand for business loans.
Cathay Bank estimates that slower growth in bank loans for business activities is due to the uncertainty regarding the near future of the economy. The possibility of a tax reform, coupled with the lack of action by the government to reduce spending and increase public investment are factors that are raising questions and forcing companies to delay projects.
The latest cases of political corruption revealed, the fiscal crisis and the poor economic situation have plunged business confidence to its lowest level since 2009.
The business sector is not only concerned about what has happened, but what could happen in the coming months, as reflected in the results of the Central Bank index which measures perceptions of economic agents regarding the business and investment climate in the country.
While SMEs show some optimism, large industries are more realistic and more cautious with their growth expectations.
From a statement issued by the Chamber of Industries of Costa Rica (ICRC):
Industrial companies are not any more optimistic than they were last year. This is the result of the study entitled "Business Outlook and competitiveness factors in the industrial sector, 2015" conducted annually by the Chamber of Industries of Costa Rica and presented today to the media.
The Ninth Edition of the Deloitte Business Barometer shows a deterioration in view of the economic situation of the country for the next 12 months.
From a statement issued by Deloitte:
Summary of results
Recent macroeconomic performance and prospects
According to data collected during the ninth edition of Deloitte Business Barometer conducted in October and November, the results show a deterioration in the vision of entrepreneurs regarding the economy compared to May-14 survey.
The business confidence index calculated by the "Business Pulse" survey reached its lowest level in the last two years, with negativity being felt in the services and construction sectors in particular.
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