At a time of economic slowdown, companies must immediately review business models and identify opportunities arising from the creation of new market niches.
In Central America, during the first half of the year, at least four of the six economies reported declines in productive activity. The most dramatic case is that of Nicaragua, which in February recorded a 7% year-on-year drop in the Monthly Index of Economic Activity (MIEA), a situation reported since the political crisis began in April 2018.
Late loans granted by public banks to small companies amounted to 5.5% in May, 3.8% in the case of medium-size companies and 3.3% in the case of large companies, a situation attributed to the economic slowdown.
The percentage of credits reported by the General Superintendence of Financial Entities (Sugef), refers to loans that went into default for more than 90 days and judicial collection, granted by public entities such as the National Bank, Banco de Costa Rica and Banco Popular.
The low dynamism of the commercial activity and the high unemployment, are the main reasons behind the fall in the consumption in Costa Rica, and great changes are not expected in the short term.
In February 2019, the country's production, measured according to the Monthly Economic Activity Index, registered a 1.7% year on year variation, informed the Central Bank of Costa Rica.
In February, the annual growth rate of economic activity was 2.2%, making this the tenth consecutive month of slowdown.
From a statement issued by the Central Bank of Costa Rica (BCCR):
In the first two months of 2015 the country's production, measured by the cycle trend of the Monthly Index of Economic Activity, grew by 2.4% (3.5% in the same two months in 2014). The annual rate in February was 2.2% (3.7% in February-14).
The Central Bank has confirmed the decline in domestic demand mainly in agriculture, trade, hotels and restaurants, and transport and storage.
From a statement issued by the Central Bank of Costa Rica (BCCR):
The country's economic activity, measured by the cycle trend of the Monthly Index of Economic Activity (IMAE), recorded a variation of 2.9% in January 2015, 0.4% lower than that observed a year earlier when production grew by 3.3% and 0.7% lower than the average growth of the indicator in 2014 (3.5%).
The Monthly Economic Activity Index shows inter annual growth of 2.68% up to June, the lowest rate since the end of 2010.
From a statement by Aldesa:
Economic Activity
The different rates of national economic activity continue to describe an extremely low rate of economic growth. The Monthly Index of Economic Activity (MIEA) marks a growth of 2.68% through June, the lowest rate since the end of 2010, when there was talk of a second worldwide recession.
Economic growth remains above 4% but it is slowing down and becoming concentrated on a few activities.
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presented on Tuesday July 16 its second report on economic conditions in 2013, which indicates that economic growth remains above 4 percent, but is slowing down and is concentrated on a few activities.
In January 2013 the Monthly Indicator of Economic Activity recorded a variation of 3.3%, whereas last year it was 7.2%.
Monthly Indicator of Economic Activity (MIEA) published by the Central Bank of Costa Rica:
The country's economic activity, as measured by the cycle of the Monthly Indicator of Economic Activity (MIEA), showed a variation of 3.3% in January 2013, lower than a year earlier when production grew by 7.2% .
Growth in this economic sector, which differentiated Costa Rica from other Central American countries, has lost the rhythm it held in previous years.
Details from the monthly index of economic activity (MIEA), which is calculated monthly by the Central Bank of Costa Rica, reveals that financial intermediation and insurance, which grew at a rate of 9% in early 2012, is now doing so at 6%: As for the business services sector, it is currently growing at 6% a year, while in 2011 it increased at a rate of 13%.
The constant deceleration of the Volume Index of Economic Activity (IVAE in Spanish), is a clear sign that the country's economy could end 2012 in recession.
Data reported by the Central Reserve Bank (BCR) up until August indicates that the IVAE that only grew by 0.7% compared to 3.4% reported in the same period of 2011.
"The Volume Index of Economic Activity (IVAE), calculated each month by the Central Reserve Bank (BCR), reveals the trend of the country's economy over a short period of time.
As of July 2012 the Monthly Economic Activity Index is 4.5%, confirming a slowdown that began five months ago.
An article in Elfinancierocr.com reports that "This is a significant drop since last June as it was thought that the economy would advance at a rate of 5.3%. With the July data the national economic has been slowing down for the last five months, and in March a decline started in the dynamism that had been driven by the manufacturing sector. Increased activity was recorded in February when there was a figure of 7.43% in the variation of the interannual Imae. "
The first six months of 2012 reflect poor growth levels of 1%, below the already meager 1.6% projected by the government.
From the Salvadoran Association of Industrialists (ASI):
The Salvadoran Association of Industries (ASI) presented the balance of the Salvadoran economy during the first six months of the year, demonstrating that El Salvador is the country with the lowest economic growth and the only clear decrease in the region.
Industry, trade and agriculture, which together make up half the country's GDP, are showing signs of slow-down, which in turn will impact growth targets for 2011 and 2012.
Costa Rica's economic activity indicator for August displayed an increase of 4.2% for trade, lower than in previous months. Since last May, Industry growth has been stagnant at 3.5% relative to 2010, while the agricultural sector has started to fall.
The variation of IMAE in September was 3.08%, highlighting the slowdown trend observed since February.
February was the month which recorded the highest figure of the year: 6.30%.
However, this indicator has been declining significantly and is converging to the values observed (3.08%) since June of this year, indicating a significant stabilization.
Monitoring conducted by FUSADES at the enterprise level reflected a decrease in sales, employment, imports and investments in April.
In addition, consumer perception also went down after a slight upward trend in March.
Journalist Patricia Palma, wrote in Elsalvador.com: "According to this monthly monitoring, which measures positive or negative entrepreneurial perception about their situation, the overall sales indicator showed a net balance of -54%. That is, sales decreased for more than half of the respondents. This is the biggest drop since the indicator began a downward trend that has now continued for eight consecutive months. The same behavior was shown by the overall employment indicator, which went to -40%, its lowest level in the last nine months."