New Reality, Sales and Industrial Production

Because in this context of new commercial reality the sales of alcohol, fertilizers, soaps, detergents and chemical and pharmaceutical products have increased, the productive activity of the Central American industrial sector has been dynamized.

Tuesday, January 12, 2021

According to figures from the Bank of Guatemala, during the III Quarter of 2020 the Guatemalan Gross Domestic Product reported -2% year-on-year variation, a behavior that contrasts with the evolution of the manufacturing industry, which for the period in question registered a 3% increase in its production.

This contrast is largely explained because the spread of covid-19 caused changes in people's consumption habits, which was a determining factor in the increase in the production of a certain group of manufactured products.

See "Chemical Industry: Tracking Trends in the Region"

According to the Central Bank's report, for the period from July to September and in the context of the pandemic, the Guatemalan market observed a dynamic in the internal and external demand for products such as alcohols, fertilizers and other chemical products for agricultural use, soaps, detergents and cleaning preparations, pharmaceutical products and medicinal chemicals.

This phenomenon was not only evident in Guatemala, since in El Salvador there are entrepreneurs who confirm that the chemical and pharmaceutical industry was one of the few sectors that resisted the economic crisis that caused the covid-19 pandemic.

Carmen Estela Pérez, president of the Association of Chemical and Pharmaceutical Industries of El Salvador (Inquifar), told that "... the sector knew how to react quickly to the demand that arose, but this is possible, in part, because of the strength achieved by the sector in recent years."

Also see "Pharmaceuticals: How do Markets Behave?"

In addition to the rise in production, commercial opportunities were also generated in the Salvadoran market for pharmaceutical products. Rafael Cardenas, commercial director of Paill Laboratories, explained that "... the opportunity arose to manufacture products such as zinc and ivermectin, but trying not to stop supplying the market with other products such as those required by patients with chronic conditions."

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