Economy: Slight Improvement in Central America

After the economies of the region grew by 2.6% in 2018 as a whole, the IMF estimates that 2019 would close with a rise of 2.7% and could reach 3.4% by 2020.

Wednesday, October 16, 2019

The document "World Economic Outlook", prepared by the International Monetary Fund (IMF), states that for Panama the projected growth of the Gross Domestic Product (GDP) for 2019 was reduced from 5% to 4.3%.

Although Panama remains among the most dynamic economies in Latin America, the economic recovery has been slower than anticipated, with construction and services some of the sectors affected, argued the international organization.

According to IMF forecasts, the Dominican Republic will be the economy that will grow the most in the region, as it would report a 5% increase by the end of the year. For 2019 Guatemala and Honduras project 3.4% growth, El Salvador 2.5% and Costa Rica 2%.

In the case of Nicaragua, the forecasts are not very encouraging, because after the economy contracted 3.8% in 2018, due to the political and social crisis that began in April last year, for 2019 the IMF estimates that the fall in GDP will be 5%.

In the global context, the IMF says that after "... a strong slowdown in the last three quarters of 2018, the pace of global economic activity remains weak. In particular, the momentum of manufacturing activity has weakened substantially and reached levels not seen since the global financial crisis.

More generally, growing trade and geopolitical tensions have exacerbated the uncertainty surrounding the future of the global trading system and international cooperation, damaging business confidence, investment decisions and international trade
."

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