Economy: Predictions Reserved for the Region

The outlook for some economies in the region for 2019 is not the best: in Nicaragua GDP is expected to fall between 5% and 7%, while in Costa Rica the growth estimate at the end of the year was reduced from 3.2% to 2.2%.

Tuesday, July 23, 2019

The estimates of the Nicaraguan Foundation for Economic and Social Development (Funides), presented in its "Informe de Coyuntura - Julio 2019", indicate that by 2019 an economic contraction of between 5.4% and 6.8% will be reported in the country.

The projection is based on a 6.6% contraction in private consumption, an 11.7% reduction in public spending and on the fact that fixed private investment could fall by 20%.

Nicaraguan exports and imports will also report at the end of the year a decline according to the study, in this case the year-on-year decline would be 8% and 15%, respectively. See Funides report.

The Costa Rican economy is another of the Central American economies that does not go through its best time, since in recent months the slowdown in the pace of activity has deepened.

You may be interested in "Economic Activity Does Not Rebound

The latest report of the Central Bank of Costa Rica (BCCR) details that in May 2019 the Monthly Index of Economic Activity reported in May a 1.3% year-on-year increase, one of the lowest growth rates reported in recent years, as a similar variation was not recorded since November 2013.

In this context, the BCCR reviewed the Macroeconomic Program and decided to adjust the economic growth projection for 2019 to 2.2%, with a moderate recovery to 2.6% by 2020.

The lower estimated growth is mainly the result of a poorer international economic performance, adverse climatic shocks, the fall in the price of important agricultural products for export, low levels of confidence among local consumers and investors, and the under-execution of public works, argued the BCCR. See Central Bank report.

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