The drop in production is explained by the performance of activities that were affected by the emergence of the covid-19 pandemic in March 2020, a situation that lasted for the rest of the year.
The Gross Domestic Product (GDP) valued at constant 2007 prices registered, according to calculations of the National Institute of Statistics and Census (INEC), an amount of $35,308.7 million, which corresponded to a decrease of $7,724.1 million, according to an official report.
In the critical context of this year, the resilience of remittances and exports, added to the decline in oil prices, would have somewhat shielded the Guatemalan economy, whose GDP would fall only 2% by the end of 2020.
The programs in response to Covid-19 (Bono Familia, Fondo de Protección al Empleo, Fondo de Crédito para Capital de Trabajo), along with the temporary restructuring of loans by the banking system, are helping to sustain household income and business liquidity, the multilateral agency reported after making its last visit.
"Growth remains susceptible to adverse shocks to global growth, economic and socio-political stress in Nicaragua, the continued weakness in consumer and business confidence, and uncertainty regarding the implementation of the fiscal reform.”
After the slowdown in growth between 2017 and early 2019, the economy has recovered since mid-2019, as a result of a rebound in services, agriculture and manufacturing, which produced an estimated 2.1% growth in 2019, reported the International Monetary Fund (IMF).
Agriculture, livestock, forestry and fisheries, and financial intermediation largely determined the 2.4% increase in GDP in the third quarter of last year, compared to the same period in 2018.
Agriculture, Livestock, Forestry and Fishing registered a 2.6% increase, mainly because of the rise in the Gross Added Value (GVA) of coffee cultivation as a result of reseeding, maintenance and fertilization in the farms during the third quarter, informed the Central Bank of Honduras (BCH).
After the economies of the region grew by 2.6% in 2018 as a whole, the IMF estimates that 2019 would close with a rise of 2.7% and could reach 3.4% by 2020.
The document "World Economic Outlook", prepared by the International Monetary Fund (IMF), states that for Panama the projected growth of the Gross Domestic Product (GDP) for 2019 was reduced from 5% to 4.3%.
In the first quarter of the year, the country's Gross Domestic Product increased 1.8% year-on-year, lower than the 3.3% reported in the same period in 2018, which is partly explained by the fall in the prices of some agricultural export products.
According to the report of the Central Bank of Costa Rica, the slowdown combined external and internal factors, among which stand out:
Financial and insurance activities and trade and vehicle repair were the sectors that explained most of the 1.8% year-on-year growth of the country's Gross Domestic Product, reported in the first quarter of 2019.
Compared to the same period last year, the quarterly results show a reduction in the growth rate, as a reflection of a lower dynamism of exports of goods, added to reductions in the expectations of world economic growth and the main trading partners, explains the Central Reserve Bank of El Salvador (BCR).
Construction and mining activities explained part of the 2.5% year-on-year increase in Gross Domestic Product last year.
El Salvador recorded a growth rate in 2018, based on the expansion of consumption and investment, according to the first estimates of the Central Reserve Bank (BCR), which implies a growth two tenths higher than that reported in 2017, reported the institution.
During 2018, the constant Gross Domestic Product totaled $41,693 million, almost 4% more than what was reported in 2017, a rise that is partly explained by the behavior of the commercial sector.
During 2018, the behavior of economic activities related to the external sector highlighted the Panama Canal, the Colon Free Zone and financial intermediation, reported the Office of the General Comptroller of the Republic.
The new methodology that the Banco de Guatemala will use to measure the country's production incorporates six new sectors, which are included in the eleven already existing ones.
The Representatives of the Bank of Guatemala (Banguat) informed that in case of private services it will be divided into professional, scientific and technical activities, administrative services and support activities.
Explained mainly by the private consumption expansion, the Gross Domestic Product reported a year-on-year increase of 3% in the first half of the year.
Regarding growth in the second quarter of the year, the Central Reserve Bank (BCR) reported that the production process informed between April and June this year confirms the greatest boom in economic activity announced during the first quarter, so it increased by one-tenth the growth projection for 2018, with an expected rate of 2.6%.
As a result of an increase in investment in new constructions and in the final consumption of households, GDP increased 3.3% year-on-year in the second quarter of the year.
During the second quarter of 2018, the economic activity volume, measured with the trend of the Gross Domestic Product (GDP) cycle, increased at an annualized rate of 3.6%, mainly as a result of an increase in investment in new buildings and final consumption of households.
During the first three months of the year Nicaragua's annual GDP growth was 2.3%, well below the 7.7% increase reported in the same period in 2017.
As of March 2018, the Nicaraguan economy achieved year-on-year growth of 2.3% and 3.5% in annual average terms, reported the Central Bank of Nicaragua.
The report outlines that in terms of expenditure, interannual growth of GDPT was determined by joint impulses of net external demand and domestic demand.In the first quarter, net external demand showed growth in exports (7.7%) and imports (1.3%). For its part, absorption registered an increase in consumption (1.3%), mainly.
The poor performance of the mining sector and the decline in the export price of sugar and coffee could have a negative impact on the outlook for economic growth this year.
According to Bank of Guatemala (Banguat), the recent performance of short-term indicators of economic activity such as the Monthly Index of Economic Activity, imports and family remittances, among other things, they anticipate a performance consistent with the estimate for the end of the year, which ranges between 3% and 3.8%.
Manufacturing and Commerce, were the sectors that most influenced the year-on-year growth of 3.1% registered during the first quarter of the year.
From a statement issued by Banco Central de Honduras:
The overall result of the GDPT - seasonally adjusted - during the first quarter of 2018 compared to the fourth quarter of 2017 was 0.9% higher, mainly explained by an increase in external demand.