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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More on this topic

Dark Economic Outlook

June 2020

The World Bank projects that the Central American economy will contract by 3.6% this year, due to restrictions on movement, a decline in remittances and tourism, and a drop in agricultural prices.

The sudden and widespread impact of the coronavirus pandemic and the measures taken to contain it have caused a drastic contraction in the global economy, which, according to World Bank forecasts, will shrink by 5.2% this year, the bank reported on June 8.

Political Reform to Boost the Economy

March 2020

Nicaraguan businessmen believe that electoral reform is essential to reactivate the country's economic activity, which has been in decline since the crisis erupted in 2018.

According to estimates by the International Monetary Fund (IMF), Nicaragua's Gross Domestic Product contracted by 5.7% in 2019, a drop that complements the year-on-year variation of -3.8% recorded in 2018.

Panama to Grow 5.6% in 2016

October 2016

The government plans to close the year with growth of 5.6% in GDP, and estimates and an increase of 6.3% for 2017.

From a statement issued by the Ministry of Economy and Finance: 

Panama's economy continues to grow strongly and steadily, in the context of low inflation, low unemployment and good fiscal performance. 

IMF Concludes Review of Panama

November 2011

"Panama is still one of the fastest growing countries in the Americas."

A mission from the International Monetary Fund (IMF), led by Corinne Delechat, visited Panama from 7 to November 18 to conduct the annual Article IV Consultation (1). At the end of the discussion, Ms. Delechat issued the following statement in Panama City:

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