Central America Fiscal Lens No. 5 reported that gross domestic production in Central America in 2012 amounted to U.S. $184.000 million. The fastest growing economies were Panama, Costa Rica and Nicaragua.

As for exports, although they grew by 7.1%, they were quite far from the 20.5% achieved in 2011. There was also less growth in remittances (U.S. $13.430 billion) with a corresponding impact on domestic consumption. A record was set in Foreign Direct Investment (FDI) as it reached U.S. $9.072 billion of which about 60% was concentrated in Costa Rica and Panama.

The study concludes that only the public debts Panama and Nicaragua, using official data, are sustainable in the medium term.

Source: Central American Institute of Fiscal Studies

More on this topic

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Fitch notes that the relatively favorable external environment will not be enough for Central American countries to improve their credit ratings, which could remain stable despite fiscal problems.

From the press release by Fitch Ratings:

Fitch Ratings-New York-22 October 2015: External tailwinds are unlikely to lead to a significant uplift in Central America's creditworthiness, says Fitch Ratings in a new special report.

El Salvador: Economic Situation Report - First Quarter 2015

May 2015

"The Salvadoran economy continues to stagnate in a cycle of low growth and uncontrollable public debt, while economic and social policies focus on short-term relief, driving away employment opportunities."

From a statement by the Salvadoran Foundation for Economic and Social Development (FUSADES):

The Healthy and Sick Fiscal Deficits of Central America

December 2013

While Nicaragua and Panama have sustainable levels of public debt, for El Salvador, Honduras and Costa Rica the prognosis is "reserved" .

Recent analysis by the Central American Institute for Fiscal Studies (Icefi) reflects very different fiscal situations in each country.

Sustainability of Public Debt in Central America

June 2013

The Central American Institute for Fiscal Studies has concluded that only the public debts of Panama and Nicaragua, using official data, are sustainable in the medium term.

The main theme of the fifth edition of the 'Lente Fiscal Centroamericano' (Central American Fiscal Lens) is an analysis of debt sustainability in Central America, which depends greatly on interest payments on debt, economic growth, inflation, revaluation and management of the fiscal deficit.