Cepal warns of smaller growth in Guatemalan economy

After reaching a growth of 5.7% in 2007, the economy suffered a strong slowdown to the point where CEPAL is projecting a growth of 4.3% for 2008 and 4.0% in 2009.

Thursday, August 28, 2008

The slowdown of the economy comes with an increase in inflation, which means there will be an increase in the monetary policy interest rates, and this will in turn cause the growth of the Gross Domestic Product (GDP) to shrink.

More on this topic

Costa Rica's Economy Losing Strength

November 2011

Industry, trade and agriculture, which together make up half the country's GDP, are showing signs of slow-down, which in turn will impact growth targets for 2011 and 2012.

Costa Rica's economic activity indicator for August displayed an increase of 4.2% for trade, lower than in previous months. Since last May, Industry growth has been stagnant at 3.5% relative to 2010, while the agricultural sector has started to fall.

Costa Rica: Inflation Not Caused by Growth

November 2010

The variation of IMAE in September was 3.08%, highlighting the slowdown trend observed since February.

February was the month which recorded the highest figure of the year: 6.30%.

However, this indicator has been declining significantly and is converging to the values observed (3.08%) since June of this year, indicating a significant stabilization.

The destiny of the dollar, the euro, the yuan and the colon

September 2008

In order to reduce the effects of the economic slow down, some politicians are turning to monetary policy or the Central Bank. They believe that by printing more money there will be more wealth, more investment and more employment.

When a Central Bank, such as the US Federal Reserve (FED) or the European Central Bank, increases the amount of money in circulation it is done by reducing interest rates.

Guatemala: Modest growth anticipated for 2008

August 2008

The Association for Investigation and Social Studies (ASIES) carried out a moderate study of the local economy.

ASIES analyst, Carlos Gonzalez, pointed out that the unfavorable external climate resulting from the financial crisis, and the high price of oil and food - that started in 2006 and worsened in 2007, began to affect production activities during first semester of this year.

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