According to the IDB, the percentage of the population living in substandard homes or those who do not have adequate housing, reaches 78% in Nicaragua, 67% in Guatemala, 58% in El Salvador, 57% in Honduras, 39% in Panama and 18% in Costa Rica.
An IDB study indicates that over two thirds of households in Nicaragua, Guatemala, Bolivia and Peru live in poor housing. Brazil and Mexico are the countries which have the largest deficits.
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) has presented its third report on economic conditions in 2011.
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.
The report underscored the importance of persevering with the process of fiscal consolidation and public debt reduction, while protecting investment and social expenditures.
IMF Mission Visits Nicaragua to Conduct Seventh and Last Review of the Extended Credit Facility Press
Release No. 11/331 September 13, 2011
A mission from the International Monetary Fund (IMF) visited Managua during August 30–September 9 to discuss policies in the context of the seventh and last review of the Extended Credit Facility (ECF). At the end of the mission, Mr. Marcello Estevão, mission chief for Nicaragua made the following statement:
A critical view of the simplistic methods used in calculating the tax burden that supports an economy.
When analyzing a tax reform proposal, the first argument considered is what is the percentage of taxes collected by the state in relation to the Gross Domestic Product (GDP) of the country.
Juan Carlos Hidalgo, on his blog at Elfinancierocr.com, shows with solid arguments, the fallacy of comparing, without thorough analysis, the public figures of the ratio of tax revenue to GDP, which leads to erroneous conclusions which usually hide the main problem: the spending inefficiency demonstrated by the state with the money collected through taxes.
The IDB loan will strengthen fiscal management and improve tax collection.
Nicaragua will strengthen fiscal management, improve tax collection and increase the quality, transparency and efficiency of spending on poverty with the third and final loan of U.S. $ 42.5 million to support policy reforms approved by the Inter-American Development Bank (BID).
Slow recovery tied to a lagging U.S. economy, 3% growth in 2010 due to increased domestic consumption and rising remittances and international trade.
The countries in Central America are recovering gradually, led by a rebound indomestic demand (following its sharpcontraction in 2009), which has partly spilled over into imports. Pickups in exports and morerecently remittances have been further positive developments.
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.
Central America may be directly impacted by the slowdown in the recovery of the world economy.
For the time being, the region's measures of external and internal demand do not seem affected by the threat of lower growth rates for the economies of partner developed countries. Some central banks had raised their expectations but, in view of the risks, they are likely to revise their growth predictions back to original levels between 2.0% and 2.7%.
Central American countries still need to improve their economic performance to reach investment grade ratings.
On its Quarterly Country Risk report for June 2010, the Central American Monetary Council (SECMCA), notes that Moody’s Investor Service improved the foreign currency risk ratings for Guatemala and Nicaragua. For Guatemala, the criteria for this improvement included a stable macroeconomic environment, backed by prudent fiscal and monetary policies, and for Nicaragua improvement in debt indicators and low fiscal deficits.
In El Salvador, the debate over the advantages and disadvantages of dollarization has been reignited, as the government is in need of resources for funding its programs.
President Funes has regretted that Dollarization has limited El Salvador from taking actions to combat the economic crisis. However, Augusto De la Torre, chief economist for Latin America and the Caribbean at the World Bank, repeated that dollarization is not an obstacle, and that in the case of Panama and El Salvador it has been key to relieve them from external pressures and exchange rate volatility.
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”.