$5 Million Investment in Dairy PlantFriday, May 28, 2021 In El Salvador, the Cooperativa Ganadera de Sonsonate invested in the purchase of specialized machinery that will be used to pasteurize dairy products and to package the products. According to information disclosed by executives of the Cooperativa Ganadera de Sonsonate, Salud, the industrial plant will now have a filling machine with a capacity to package 6,000 liters per hour. Tourism: Falling Revenues and ForecastsMonday, May 10, 2021 After foreign exchange revenues from tourism in Costa Rica fell from $4 billion to $1.343 billion between 2019 and 2020 due to the closure of borders and airports, it is projected that the sector will remain in the red during 2021. March 2020, when most countries began to register Covid-19 cases, was the month in which revenues began to fall. Statistics from the Central Bank of Costa Rica (BCCR) show that in this context of pandemic, between April and October of last year, the Costa Rican tourism industry practically did not earn any foreign currency. Gold: Outlook for Business in NicaraguaFriday, March 19, 2021 The mining companies' association estimates that in 2021 gold exports will be 13% higher than the value exported during 2020, explained in part by an increase in the volume extracted and the rise in the international price. Gold exports in Nicaragua have been on the rise in recent years, mainly explained by increased activity in the sector, added to the upward trend that the price has followed in the international market. Mining: $25 Million Investment AnnouncedWednesday, March 10, 2021 Plantel Los Angeles, a mixed capital company operating in Chontales, Nicaragua, plans to invest $25 million in the construction of three new raw gold processing plants. The company, which will invest in the new processing plants, caters exclusively to producers who are classified as artisanal miners. The announcement of these projects comes in the context of the increase in gold exports, since between January 2020 and the same month of 2021, Nicaraguan sales abroad went from $50.6 million to $60.8 million. Guatemala from the Perspective of the IMFWednesday, November 4, 2020 In the critical context of this year, the resilience of remittances and exports, added to the decline in oil prices, would have somewhat shielded the Guatemalan economy, whose GDP would fall only 2% by the end of 2020. The programs in response to Covid-19 (Bono Familia, Fondo de Protección al Empleo, Fondo de Crédito para Capital de Trabajo), along with the temporary restructuring of loans by the banking system, are helping to sustain household income and business liquidity, the multilateral agency reported after making its last visit. Alcoholic Beverages: Bill Attempted to ReviveWednesday, September 30, 2020 A bill is being considered in Costa Rica that proposes to identify each container of this type of beverage with a device, label or sticker in order to prevent smuggling, a measure that, according to business people, would not be effective. In 2019, a project called "Law against the adulteration of smuggled beverages with alcoholic content" was presented to the Assembly. This initiative proposes the use of technological tools to combat smuggling, imitation and adulteration of alcoholic beverages. See full bill. Economic Growth: Optimism at the End of 2020Wednesday, August 26, 2020 Variations indicating a certain improvement in the world economy, the reopening of different markets and the recovery of exports are some of the factors that could influence Guatemala's economic activity to decrease less than expected in 2020. In this context of economic crisis resulting from the outbreak of covid-19, the Economic Commission for Latin America and the Caribbean (ECLAC) predicted in April that the Guatemalan economy would fall by 1.3% at the end of 2020. According to the projections updated in July, the contraction of the Gross Domestic Product would be worse, as the forecast was for a -4.1% variation. Loans in Guatemala: Making Procedures More FlexibleFriday, August 14, 2020 The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000. In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks. Financial Sector: Preference for Liquidity IncreasesWednesday, July 8, 2020 Preventive reasons for unforeseen expenses in the context of the pandemic and low liable interest rates are some of the factors that explain the increase in the balance of short-term savings instruments in the Costa Rican market. In the context of the spread of covid-19 and the restriction of several productive activities, the broad money supply (including cash held by the public and highly liquid financial instruments in national and foreign currency) showed a 35.7% year-on-year growth rate in June 2020, considerably higher than the 2.7% recorded in the same month in 2019, while the balance of term instruments fell, reported the Central Bank of Costa Rica (BCCR). Maritime Transport: Too Expensive to Be SustainableThursday, June 4, 2020 Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region. As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders. Livestock: Good Numbers in the Midst of the CrisisThursday, April 30, 2020 During the first quarter of the year in Costa Rica 99,662 cattle were slaughtered, 4% more than reported in the same period in 2019, which is largely explained by shipments to the market in China. Although the spread of covid-19 has negatively impacted most economic sectors worldwide, data from the Livestock Corporation (Corfoga) detail that between January and March 2019 and the same period of 2020, the number of cattle slaughtered increased by 3981, from 95681 to 99662. Fitch Downgrades Guatemala's Risk NoteFriday, April 3, 2020 Arguing that a lower economic growth and a higher fiscal deficit are expected due to the effects of the covid-19, the agency decided to modify from BB to BB- the country risk rating. The situation of the tax burden in the country is another factor affecting Fitch's decision, which was communicated to the Banco de Guatemala through the preliminary bulletin that the agency sent to the authorities. Alcohol Gel: Request for Expedited Permit ManagementTuesday, March 31, 2020 Because alcohol gel not meeting minimum requirements is marketed in Nicaragua, local laboratories are asking the government to expedite the process of granting permits for the manufacture and registration of the product. The health crisis generated by the spread of covid-19 has caused alcohol gels that do not meet the requirements established by the World Health Organization (WHO) to be sold on the local market. Costa Rica: Dollar Price Rises to ₡581.8Thursday, March 26, 2020 In the last 15 days, the price per dollar in the wholesale market has risen ₡16, which can be explained by economic uncertainty and people's preference for buying dollars. According to data from the Central Bank of Costa Rica (BCCR), a rising trend has been reported in recent weeks. Between March 11 and 26, the price has risen from ₡565.69 to ₡581.77, equivalent to a 3% variation. Guatemala: Exchange Rate Up to Q7.75Tuesday, March 24, 2020 Between March 23 and 24 the price of the Quetzal vs. Dollar rose from Q7.67 to Q7.75, which is attributed to the expectations of a possible economic slowdown, due to the impact of the Covid-19 crisis. The expectations of a decrease in the income of family remittances, the time that the international economy could be depressed and the component of fear in the agents, are other causes of the upward pressure that the exchange rate has reported in the last hours. |
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