Inflation deceleration and Risks to economic recovery.
The quarterly report from the Executive Secretary of the Central American Monetary Council (SECMCA) focuses on the region's inflation and recovery prospects.
Inflation, measured by year-on-year change in consumer prices, slowed in the second quarter of 2010 to 4.9%, compared to 2.9% in June 2009. This level is within the target limits set by the region's central banks.
One year after the fall of Lehman Brothers, SECMCA analyzes the international situation, and Central America's perspectives and current situation.
Production continues to fall, as evidenced by the Central American Monthly Economic Activity Index, confirming a process started on the last trimester of 2008. June's variation was -1.9% when compared to the same month of the previous year.
Inflation is declining and economic growth is decelerating - Analysis of the Executive Secretary of the Central American Monetary Counsel.
The excessive volatility in the financial markets and the low investor and consumer confidence levels are omens that the crisis is going to last, which is being translated into lower levels of consumption and investment and high unemployment rates in the most developed countries.
Economic growth is slowing down in Central America, but economic activity is still positive in spite of the slowdown in the United States, says the Central American Monetary Board in its June report.
The numbers from the board's Monthly Economic Activity Index for the firs three months of this year show a process of deceleration in both short- and long-term trends and a downturn in the business cycle.