What is concerning businessmen?

Excessive regulation, increased tax charges and geopolitical uncertainty are the main risks to business growth in the region for Central American CEOs.

Tuesday, October 2, 2018

PricewaterhouseCoopers (PwC) conducted the Global CEO Survey in the Central American region, in which a group of business executives from Central American countries and the Dominican Republic shared their opinions about their economic expectations.

One of the main results collected is that 70% of CEOs consider that global economic growth will continue at the current levels. 80% of leaders are planning the growth of their organizations based on organic evolution and new strategic alliances and agreements.

According to the report, Central American CEOs have always been guided by caution about the evolution of the world economy, and this year is not an exception: the overall performance will remain the same in the short term for 70% and there will be a decrease for 20%. In the previous survey, about 65% estimated that the situation would remain the same, but one in every four directors expected an improvement, and only one in every ten had a negative perception of the issue.

The document explains that over-regulation, increased tax charges and geopolitical uncertainty are the main potential risks to the growth prospects of Central American CEOs.

The concern about changes in regulation by local and global CEOs is confirmed in the answers to the question about the aspects listed that would affect the development of companies in the next five years. In the case of Central America, these changes in the regulation are the main disruption factor for 75%, much more than the global perception that reaches 63%.

See "9th Annual Survey of PwC Interamericas CEOs."

More on this topic

Industrialist Expect a Year Without Growth

April 2019

In Costa Rica, businessmen expect job creation to stagnate this year, as only a thousand new jobs are expected to be created, resulting in a year-on-year increase of just 0.7%.

The forecasts of the Chamber of Industries of Costa Rica (ICRC) for this one are the result of the study that the sector carries out every year, which concludes that in the most positive scenario, the performance of production, employment and investment, would be similar to that of 2018.

More Insecurity, Less Investment

January 2019

The effect of crime and the tax reforms that have been implemented are part of the factors that have caused companies in El Salvador to decide not to make more investments.

The Business Competitiveness Survey, prepared by the Salvadoran Foundation for Economic and Social Development (FUSADES), details that between 2011 and 2017 the number of companies that have no interest in investing in the country registered a 11% increase.

Business Expectations at Historic Low

May 2018

In Costa Rica, between the first and second quarters of the year, expectations of business leaders fell by 4%, registering the lowest value in the last eight years.

The Research Institute of Economic Sciences at the University of Costa Rica reported that " ... The result of the global index of business expectations reveals in general terms that the optimism of business leaders weakened by 2.3 percentage points compared to the previous quarter, standing at 51.3 ... ".

Guatemala: Low Expectations for the Second Half of Year

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According to the 49th business survey from the Association of Social Studies and Research, the pattern of production and employment shows that economic growth has not been strengthened.

“Presentation of results of the 49th. Business Association Survey Research and Social Studies (ASIES) to April 2011.

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