After the Legislative Assembly ratified the country's accession to the Organization for Economic Cooperation and Development, the business sector is of the opinion that this will help consolidate the institutional reforms needed to make the State more efficient.
The Assembly informed that by approving in the second debate the bill 22.187, which contains the agreement on the terms of accession, the deputies gave the green light to Costa Rica's accession to the Organization for Economic Cooperation and Development (OECD).
For Fitch Ratings, the results of the General Elections in Guatemala put at risk the approval of reforms necessary for the development of the country, since the next legislature will be composed of deputies from 15 different political parties.
The deputies to the Congress of the Republic who were elected for the 2020-2023 period and who will take office on January 14, 2020, will have the challenge of directing efforts from the legislative in the area of economic development.
Improving competitiveness and modernizing institutions are some of the challenges that Panama must overcome in order for high levels of economic growth to result in greater development for the country.
The document "Panama: Challenges to consolidate its development", developed by the Inter-American Development Bank (IDB), explains that the Panamanian economy has been one of the most dynamic in the world in recent years.
According to the IMF, in the first half of the year, the Salvadoran economy increased above the estimated potential, the inflation remained low and the fiscal position was better than expected.
From the International Monetary Fund statement:
An International Monetary Fund (IMF) team, led by Ms. Alina Carare, visited San Salvador from November 12 to 16, 2018 to discuss recent economic and financial developments.
The State of the Nation 2018 Report explains that during 2017 and the first months of 2018 the progress of Costa Rica's economy has been adverse and, in the short term, the prospects for economic opportunities, solvency and stability are negative.
Most of the drivers of Costa Rica's economy have declined in recent months, resulting in Costa Rica going through a period of multiple economic and political risks.
Slow growth in credit, imports of final consumer goods and tax collection are strong indicators of a decline in domestic demand.
According to the Economic Situation Report October-2018 of the Central Bank of Costa Rica (BCCR), the local economy is increasing as predicted in its macroeconomic programming, and inflation is kept within the target range. However, there are some indicators of deceleration in domestic demand (including slow growth in credit, imports of final consumer goods, and tax collection).
Due to the crisis that has been unfolding in the country since April, the ECLAC has reduced its growth projection for the Nicaraguan economy from 5% to 0.5% this year.
Laprensa.com.ni reports that "...Before the crisis, the ECLAC placed Nicaragua among the fiveLatin Americaneconomieswith the highest growth for this year, with an expansion of GDP of 5% after having grown 4.9% in 2017."
The downgrade and Outlook change reflect increasing political instability and the corresponding deterioration of Nicaragua's investment, economic growth, and public finance outlook
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-22 June 2018: Fitch Ratings has downgraded Nicaragua's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook is Negative.
The entity recognizes the continued economic recovery, but warns that potential growth is below the desirable level, debt remains high, and wide financing gaps are projected for 2019 and in the future.
From a statement issued by the IMF:
On May 11, 2018, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with El Salvador.
In spite of the economic progress that has been achieved in Costa Rica, employment growth has stagnated, results in education are deficient, and anti-competitive regulations continue to hinder business development.
The latest OECD economic study on Costa Rica details the factors that support the significant socio-economic achievements of the last decades, as well as the pending challenges to ensure sustainable and more inclusive growth.
This year it is projected that growth in the Honduran economy will moderate to 3.7%, partly influenced by political uncertainty and less favorable external conditions.
From a statement issued by the IMF:
An International Monetary Fund (IMF) mission, led by Roberto Garcia-Saltos, visited Tegucigalpa during April 3-12 to conduct the 2018 Article IV consultation.
In the first projects that are planned to be developed as part of the plan, around $116 million will be invested in construction works, vehicle purchases and other things.
The first investments will be made in seven departments, and the province to which the most resources have been allocated is Quiché, which will receive an investment of $46 million.In this region, 43 projects will be implemented, including the construction of a service center and the acquisition of garbage trucks.
The institution highlights the progress that has been made in reducing the fiscal deficit and stabilizing the debt, but warns that a greater effort is needed to place the debt on a downward trajectory.
From a statement issued by the International Monetary Fund:
The IMF staff team visited San Salvador during February 5—16 for the 2018 Article IV consultation [1] and held productive discussions with the Salvadoran authorities, parliamentarians, business community, and social partners. The consultation was based on revised National Accounts statistics.
Supported by greater growth in the US economy, better monetary conditions and a moderate boost in government spending, growth should accelerate gradually until it reaches a rate of 3.6% in 2019.
The mission of the International Monetary Fund (IMF) recognizes the macroeconomic stability that has been achieved, but warns of a need to approve a fiscal reform that allows the tax burden to be increased to at least 15% of GDP, and allocate that additional income to public investment, especially in social development, particularly pre-primary education, preventive health care and greater pension coverage.
Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.
The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.