Honduran economy faces difficulties in 2009

The country has not managed to sign a letter of intent with the IMF, and economic growth will decrease due to the global crisis.

Tuesday, January 6, 2009

In his three years of government, President Manual Zelaya has not managed to negotiate a new agreement with the IMF which has blocked access to other sources of credit.

The recent decision to increase minimum wages from $157 to $289 has been received positively by the unions, but it has been strongly rejected by the business community.

The Economic Commission for Latin America and the Caribbean (CEPAL) estimates that Honduras grew 3.8% in 2008 and projects a growth of 2% for 2009 compared to the 6.3% recorded in 2006 when the current government took over.

According to international reports, Honduras is among the Latin American countries which will suffer the consequences of having exceeded spending during the last boom instead of saving to prepare for hard times.

More on this topic

Nicaragua Must Improve Business Climate

November 2009

The IMF recommended Nicaragua to strengthen its governability and business climate, in order to receive external support and improve its growth perspectives.

After finishing the second and third revision of Nicaragua's economy, IMF remarked: "Nicaragua's economy has been negatively affected by the world crisis and domestic uncertainty.

El Salvador as seen by the IMF

January 2009

Like in other Central American countries, economic growth is expected to decelerate, on the back of the U.S. slowdown.

While real GDP growth rose to 4.7 percent in 2007, a record high in the last decade, it is expected to decelerate to 3.2 percent in 2008. However, the monthly economic activity indicator has signaled a mild but steady slowdown thereafter, reaching an average growth rate of 3.2 percent in the year to August.

Salvadoran Economy to grow 2.6% in 2009 according to IMF

October 2008

The International Monetary Fund forecasts that the Salvadoran economy will grow 2.6% in 2009, the lowest in 5 years.

In the update for this month's report of "Global Economic Perspectives 2008" the Fund projects that the GDP of El Salvador will grow 3% this year and 2.6% in 2009, the lowest in 5 years.

El Salvador cuts estimate of economic growth

May 2008

El Salvador's Economic Cabinet announced that its projection for economic growth this year has been reduced from 4.5 to 4 percent.

The new estimate is in line with those of the Economic Commission for Latin America and the Caribbean and Fitch Ratings. But the International Monetary Fund takes a gloomier view: it predicts 3 percent growth in El Salvador this year.

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