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 ...".
The number of mercantile companies that requested incorporation in the first quarter of the year decreased by 10% with respect to the same period in 2017.
The slow pace with which bank credit to the private sector has grown also reflects the lack of dynamism in the creation of new companies in Guatemala.The corruption cases that have not ceased appearing in the government and the suspension of operating permits, such as those for Minera San Rafael, are affecting credibility and confidence in investments.
The French company Renault has completed negotiations with a new local distributor to market the brand in the country, where they initially plan to serve about 2 thousand customers.
After several months of negotiations and without revealing details of the conditions of the deal, the Panamanian group Petro Autos, through its subsidiary Advance Motors, announced that it will start selling the European brand in the local market.
In El Salvador every week at least two companies report that they intend to close down due to the impact of extortion, a problem that, far from being resolved, seems to be getting worse every year.
Representatives from the Chamber of Commerce and Industry of El Salvador (Camarasal), said that the country's employers do not see any significant improvement in the security climate, following the six month extension last April of the extraordinary measures of the Sánchez Cerén administration to try to control crime and insecurity.
Traffic congestion, the price of land and rents, and logistical facilities are some of the reasons why more and more companies in Costa Rica prefer to be located outside of San José.
Between 2016 and 2017 the number of companies set up in San José fell from 15,311 to 14,748, which is equivalent to a decrease of 4%, according to figures from the National Institute of Statistics and Census.
For this year, growth in banking credit to the private sector is projected at between 6% and 9%, but the year-on-year increase registered up to March was only 4%.
Figures from Banco de Guatemala show that during the year 2017 credit to the private sector grew at a monthly average of 5.17%, and the lowest increases were reported in November and December when the amount increased compared to the same months of 2016 by 4.9% and 3.8% respectively.
Between February and March of this year the Confidence Index of Economic Activity rose from 46.5 to 46.9, registering an increase of just 1%.
According to the Survey on Macroeconomic Analysts' Expectations, prepared by the Central Bank of Honduras, during March the people consulted " ... stated that the country's economic situation has improved, evidenced in the macroeconomic variables at the end of 2017, which were very positive; they hope that the Government's fiscal discipline that favors control of spending will continue and that the approved tax reforms will stimulate investment and employment generation."
Four out of ten companies that operate outside the formal market are more than 15 years old, which reflects the fact that for many of them, informality is not something transitory, but permanent.
A study by the Costa Rican Union of Chambers and Associations of the Private Business Sector (Uccaep) revealed that one of the main reasons why many business units that operate in the informal sector decide to continue doing so is the high cost of social charges.
In order to facilitate business in the sector, the Tourism Authority now publishes on its website a list of agencies, lodgings and tour operators operating in the country.
From a statement issued by the Tourism Authority of Panama:
Starting from Monday foreign tourists and nationals will be able to consult a list of tourism companies nationwide who are registered with the Tourism Authority of Panama by searching in the information tab of the entity's website.
Through an agreement with the business sector, the government of Honduras has announced that it intends to simplify procedures for licenses and registration of companies.
As part of a plan to facilitate private investment, the Hernandez administration has announced that they will also be talking with mayors so that local governments facilitate the operation of companies nationwide. In addition they"... announced that from April they will start using customs' forward looking statement."
Of the almost 38 thousand companies registered in the country, only 6% export some kind of product or service, while 15% import, among which are those in the fields of manufacturing and commerce.
The Directory of Companies and Establishments 2017 (DEE) of the National Institute of Economy and Censuses (INEC) details, among other data, the business category and the activity to which the companies in the country are dedicated.
Due to a lack of consensus between employers and workers, the government established the increase for this year at 10.4%, which will be applied in two parts, beginning with a 5,2% adjustment, starting from March.
As the business sector and workers could not agree on fixing the increase, the Ortega administration made the decision to establish the adjustment. The first increase will be 5.2% and will apply from March, while the second will also be 5.2%, and will be fixed from September of this year and will run until February 28, 2019.
In an environment with a complex investment climate, between 2016 and 2017, credit to the private sector in Guatemala grew by 4%, less than the 6% registered between 2015 and 2016.
Authorities at the Bank of Guatemala (Banguat) reported that the recent judicial decisions on mining and hydroelectric projects have become the main factors that explain the environment of uncertainty that is affecting the country.
In Panama, Acodeco will be able to decide on warranty complaints without going to court, when dealing with products worth up to $5,000 and in the case of vehicles, up to $30,000.
The Authority for Consumer Protection and Defense of Competition (Acodeco), reported that on February 22 a law came into force which is "...Law 14 of February 20, 2018, which extends the rights of consumers and increases the amount on which the Authority has competence to rule on complaints, up to B /.5,000.00 and for motor vehicles up to B /.30,000.00.This allows a significant number of consumers, whose cases could not be resolved directly, had to take their claims to the Courts to obtain a decision."
The high cost of energy and the fiscal deficit are two of the problems that worry companies in Costa Rica, who also face an uncertain political scenario, a few weeks to go before a second round of elections.
With a month and a half to go before a second round of elections, Costa Rican businessmen highlighted a difficult year in terms of job creation and attraction of new investments.
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