During April 2020 the Monthly Index of Economic Activity in the country reported a 35% year-on-year variation, a fall that is explained by the restrictions imposed following the outbreak of covid-19.
The most affected activities were: Construction, Hotels and Restaurants, Commerce, Manufacturing Industry, Other community, social and personal service activities, among others.
The World Bank projects that the Central American economy will contract by 3.6% this year, due to restrictions on movement, a decline in remittances and tourism, and a drop in agricultural prices.
The sudden and widespread impact of the coronavirus pandemic and the measures taken to contain it have caused a drastic contraction in the global economy, which, according to World Bank forecasts, will shrink by 5.2% this year, the bank reported on June 8.
After the Economic Activity Confidence Index reported a 19% drop in March 2020, in April the situation worsened with a -43% year-on-year variation, a drop that agrees with the advance of the health crisis in the country.
In April 2020, the level of the Economic Activity Confidence Index stood at 32.64 points, 43.25% lower than that recorded in March 2020 (57.52 points) and fell by 26.83% compared to April 2019 (44.61 points), reported the Bank of Guatemala.
Costa Rican businessmen propose that given the economic crisis and the new normality that the country will face, the government should promote key strategies such as the sale of state assets, the transformation of public employment and the elimination of privileges in terms of pensions and salaries.
The Union of Chambers and Associations of the Private Business Sector (UCCAEP) presented to President Carlos Alvarado a document called "Pandemic Shock and Economic and Social Policies to Mitigate its Effects", which seeks to provide a way out of the health and economic crisis resulting from the outbreak of covid-19.
Given the threat of a deepening economic recession in the country, resulting from the outbreak of covid-19, it is estimated that by the end of the year the open unemployment rate could rise to 9.2%.
In the context of the health crisis, an increase in poverty levels will also be reported, and the GDP per capita indicator will decrease, explains the "Informe de Coyuntura, Abril 2020", prepared by the Nicaraguan Foundation for Economic and Social Development (Funides).
Financial Intermediation, and Manufacturing Industries, largely determined the 2.5% increase in GDP during the fourth quarter of last year, compared to the same period in 2018.
Financial Intermediation, Insurance and Pension Funds increased 1.7%, boosted by income received from commissions and interest on the loan portfolio, reported the Central Bank of Honduras.
Explained by the behavior of the Financial Intermediation, Insurance and Pension Funds, and the Manufacturing Industry, during January the Monthly Index of Economic Activity increased by 3.8% with respect to the same period in 2019.
Most of the productive activities showed positive results in the first month of 2020, standing out for their contribution to the global indicator: Financial Intermediation, Insurance and Pension Funds; Manufacturing Industry; Post and Telecoms; and Commerce, informed the Central Bank of Honduras.
During January of this year, the Monthly Index of Economic Activity reported a 2.7% year-on-year increase, which is partly explained by the behavior of trade, transport and storage.
Among the categories of economic activity that showed a positive behavior were: commerce, transportation, storage and communications, financial intermediation, agriculture, electricity and water, mining and quarrying, and domestic services, reported the Comptroller.
During January, IMAE registered a 2.5% year-on-year variation, down from the 2.8% reported at the end of 2019.
Most economic activities show positive year-on-year variations in January and higher than a year ago, with the exception of construction, whose production decreases, reported the Central Bank of Costa Rica (BCCR).
During January, IMAE registered a year-on-year variation of 3.6%, up from 3.4% at the end of 2019.
The growth rate of the Monthly Index of Economic Activity (IMAE) reported in the first month of 2020 is also higher than that recorded in January 2019, when the year-on-year change was 3.2%.
The report of the Bank of Guatemala states that "... The behavior described, was influenced by the economic activities of Commerce and vehicle repair; manufacturing industries; Real Estate activities; Agriculture, cattle, forestry and fishing and Financial and insurance activities.
During January 2020 the Monthly Index of Economic Activity reported a 5% year-on-year variation, a rise that was boosted by the construction and financial services sectors.
In terms of trend - cycle, the Monthly Indicator of Economic Activity (IMAE) shows a 5.3% annualized expansion, reflecting that the economic activity in the situation is growing at a consistent rate, reported the Central Bank of the Dominican Republic.
In February 2020, the Index of Confidence in Economic Activity in Guatemala reported a 64% growth compared to the same month last year, reinforcing the upward trend that has been registered since July 2019.
Businessmen forecast an inflationary rhythm of 3.25% for February, 3.36% for March and 3.38% for April 2020. As to December 2020 and 2021, the Panel forecasts an inflationary rhythm of 4.16% and 4.20%, in that order.
Last year, GDP amounted to Ch$66,801 million, and in real terms, production increased by 3% over that reported in 2018.
This 3.0% growth for 2019, in the amount of Ch$43,061.1 million (chained value to 2007), was mainly driven by the mining sector, reported the General Comptroller of the Republic.
The dynamism of the mining sector is specifically explained by the increase in the activity of the extraction of copper concentrate, whose production in tons increased from the third to the fourth quarter by 210%.
Nicaraguan businessmen believe that electoral reform is essential to reactivate the country's economic activity, which has been in decline since the crisis erupted in 2018.
According to estimates by the International Monetary Fund (IMF), Nicaragua's Gross Domestic Product contracted by 5.7% in 2019, a drop that complements the year-on-year variation of -3.8% recorded in 2018.
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