The Central Bank has presented its analysis of the recent performance of the economy and its arguments for maintaining the leading rate at 5%.
From a report by the Banguat:
"The performance of economic activity remains consistent with the annual estimates of GDP growth (3.2% -3.6%), which is reflected in the dynamism of some short-term indicators such as quarterly GDP, IMAE, means of payment, bank credit to the private sector, the volume of imports and exports and remittances. "
Arguing that the economy has benefited, the private sector will pursue and strengthen its model of negotiations with the government.
This was the message given by the Superior Council of Private Enterprise (Cosep) during the celebration of National Entrepreneurs Day. According to the Cosep, this strategy has resulted in positive economic growth in Nicaragua.
Leading Nicaraguan entrepreneurs continue to support the model of economic negotiation with the government.
"Everyone here is free to move, the press is free to speak and I think from that point of view we are living in an open society," said the businessman Carlos Pellas, president of Grupo Pellas.
Entrepreneurs like Carlos Pellas and Piero Coen agree that the "understanding with the Government has brought economic growth."
All quantitative performance criteria corresponding to the end of December 2009 and end of June 2010 have been met were exceeded.
A statement from the International Monetary Fund (IMF) reads:
The IMF Executive Board has concluded its fourth and the fifth review under the Extended Credit Facility for Nicaragua and approved an extension of the agreement
"Panama is still one of the fastest growing countries in the Americas."
A mission from the International Monetary Fund (IMF), led by Corinne Delechat, visited Panama from 7 to November 18 to conduct the annual Article IV Consultation (1). At the end of the discussion, Ms. Delechat issued the following statement in Panama City:
The report shows that although the country has shown steady growth of the economy, there are also challenges to achieve greater productivity and poverty reduction.
Ruben Dario’s country, shows a panorama - unsuspected only a few years ago - of the successful relationship between the government’s policies and business goals.
A report by Pastrán details how activities and discussions by businesses and government representatives, are in agreement ensuring stability and economic growth for years to come.
Though it is currently doing well, there are various factors that could hamper the country's future performance.
The volatility of the international oil price, which affects prices paid locally, as well as uncertainty about the transparency of the electoral process due to take place in November, are two of the clouds on Nicaragua's economic horizon.
The economy performed favorably in the first half of the year; the only concern was the increase in inflation.
Nicaragua’s Foundation for Economic and Social Development (FUNDES) presented its second economic situation report of 2010, concluding that the government’s management of the economy remains responsible, but it is worried by increased expenses and some off-budget costs.
The International Monetary Fund (IMF) report sheds a positive light on the country's macroeconomic situation and the stability of its financial system.
A staff team from the International Monetary Fund (IMF) visited Guatemala during August 17-26, 2010 to conduct the fourth and final review of the Stand-By Arrangement approved in April 2009. The mission met with Minister of Finance Edgar Balsells; Central Bank Governor María Antonieta de Bonilla; Superintendent of Banks Edgar Barquín; other senior government officials, and representatives of the private sector.
FUNIDES, the Nicaraguan Foundation for Economic and Social Development, unveiled its first economic situation report of 2010.
“Our report presents a balance of the economy up to September 2009, the results of the most recent business and consumer confidence surveys, an analysis of the Government’s economic and social program, and comparative data on Nicaragua’s competitiveness versus that of Central America”.
The Government risks failing to comply with the current Stand-By Agreement with the International Monetary Fund, as its fiscal deficit would reach 3.9%.
However, Fernando Delgado, IMF representative for Guatemala, stated that “if the Government provides strong reasons for increasing the deficit, the Fund could maintain the Stand-By Agreement”.
The recent increase in the value of the Costa Rican colon versus the dollar is worrisome, not only because there are no clear reasons to explain it, but also because it would be hard to contain it without causing greater problems.
In the past weeks, and without apparent reason, the price of the U.S. dollar in Costa Rica dropped considerably.
The public finances of Costa Rica went rapidly from surplus to a 4% deficit, with negative outlook.
A preliminary analysis of the situation shows that the problem is not in revenues, which have been constant in real terms, but expenses, which have increased since August 2008.
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