Despite growing by 3.39% year on year in April, ending the downward trend seen in the growth rate, the commercial sector reported a weakening of sales.
A report by the Bank of Guatemala notes that"...up to April 2016 economic activity, measured by estimating the IMAE, increased by 3.4% (3.0% in April 2015).This result was driven by the positive performance seen mainly in the following economic activities: Manufacturing Industries; Wholesale and Retail sales; Financial, intermediation, insurance and auxiliary activities; private services; Transport, storage and communications; and supply of electricity and water collection. "
Spending is slowing in final household consumption, imports of consumer goods, bank lending for consumption and the monthly index of economic activity trade.
Following the trend of slowdown seen in overall economic activity, consumer spending by Costa Ricans has lost dynamism, which is mainly seen in the expenses made at supermarkets, gas stations and restaurants.
The Union of Central American Bi-National Chambers of Commerce, Industry and Mexican Investment has been formally established.
Ucabicimex is "formed by the Chamber of Industry and Commerce of Costa Rica - Mexico (Cicomex), the Salvadoran - Mexican Trade (Chamber Casalmex), the Guatemalan - Mexican Chamber of Commerce and Industry (CAMEX), the Honduras - Mexico Enterprise Chamber ( CEHM), the Mexico - Costa Rica Enterprise Chamber (Camexcr), the Mexico - El Salvador Enterprise Chamber (Camexsal), the Mexico - Nicaraguan Enterprise Chamber (Camenic) and the Mexico - Panama Chamber of Commerce (Camexpa) ", reported Nacion.com.
Domestic trade is leading the sustained growth of the Panamanian economy, while investment in retail increases.
An article in Prensa.com reports that "In the first three months of the year alone retail revenues reached $2,197,488,000, according to the Comptroller. This is an increase of 25.7%, as in the same period last year there were $1,747,931,000 registered. "
More and more products and services are being sold with prices set in U.S. Dollars.
Maynor Cabrera, a researcher from the Central American Institute for Fiscal Studies (Icefi), identified a process of "slow dollarization".
"This trend shows itself in the increase of dollars in the economy,... one of the reasons ... is that service providers want to protect their purchasing power", added Cabrera to local newspaper Elperiodico.com.gt.