During the second quarter of the year the constant GDP totaled $10.498 million, 3% more than that reported in the same period of 2018, explained by the activity of transport and trade.
The General Comptroller of the Republic reported that activities related to the domestic economy performed positively this quarter: transportation and communications, commerce, construction, financial intermediation, government services, health and education.
After registering a 1.3% year-on-year variation in June, the Monthly Economic Activity Index in July reached 1.5%, which is mainly explained by the performance of the special regimes manufacturing sector.
After the first seven months of the year, average growth stood at 1.5%, while the average rate of the last twelve months was 1.8%, both lower than that recorded in the same period last year, reported the Central Bank of Costa Rica.
The Index of Economic Activity registered a 3.2% year-on-year growth in July, partly explained by variations in wholesale and retail trade and manufacturing industries.
According to the report of the Banco de Guatemala, the economic activity measured by the estimation of the IMAE, reported a slight acceleration in July 2019, since it registered a 3.2% growth rate, higher than the variation of 3.1% reported in June of this year.
After registering a fall from 3.7% to 2.4% between February and May of this year, the year on year variation rate of economic activity in Panama stood at 3% up to June.
Among the categories of economic activity that showed a favorable performance are: transportation, storage and communications, financial intermediation, public administration, mining and quarrying, agriculture, electricity and water and domestic services, informed the General Comptroller of Panama.
Up to June of this year, economic activity in the country grew by 2.5%, a year-on-year variation that is lower than the 2.7% recorded in May.
Domestic production of goods and services grew 2.5% in June 2019, 0.9% lower than the rate recorded in the same period of the previous year (3.4%). On the other hand, the cycle trend series showed a year-on-year increase of 1.9% (3.9% in the same month of 2018), said the Central Bank of Honduras.
Faced with the threat of a global economic slowdown and the possibility of the U.S. entering recession next year, businessmen in the region argue that to mitigate possible adverse effects, it is key to diversify export destinations.
Market analysts assure that the slowdown in U.S. economic activity is already a reality, and that what is still not clear, is the possibility that the economy will go into recession next year. The recent reversal of the U.S. bond curve, which historically has been the signal that warns of a recession in the short term, may not mean the same on this time, say some U.S. brokerage firms.
In Honduras, the Central Bank reduced the economic growth projection by the end of 2019 from 3.3% to 3.4%.
The main indicators of high-frequency economic conditions, such as the Monthly Economic Activity Index (IMAE), indicate a moderation in economic activity in relation to that observed in previous years, is one of the arguments of the Central Bank to review economic growth downwards.
In Guatemala, the Economic Activity Index registered year-on-year growth of 3.1% in June, explained in part by the variations of Private Services and Manufacturing Industries.
According to the report of the Banco de Guatemala the economic activity measured by the estimation of the IMAE, reported a deceleration in June 2019, since it registered a 3.1% growth rate, increase that is lower to the variation of 3.5% reported in May of this year.
While in June the production of special regime companies increased 10% with respect to the same month in 2018, companies operating outside those regimes grew just 0.3%.
The Central Bank of Costa Rica (BCCR) reported that the production of special regimes (SR) companies grew 10.2% in June compared to the same month last year, as a result of increased external demand for medical implements, computer and business services.
After registering a 20% year-on-year drop in June, in July the Confidence in Economic Activity Index in Guatemala showed a 7% variation.
The report of the Bank of Guatemala states that "... The Panel forecasts an inflationary rhythm of 4.72% for July, of 4.70% for August and of 4.72% for September 2019.
Because of the weakening of the construction and services sectors, the IMF reduced the economic growth projection for Panama from 6% to 5% this year, forecasting a "slow recovery.
The fundamental aspects of the Panamanian economy remain solid, and is expected to recover and next year reach its potential growth of 5.25%, with inflation approaching 2% in the medium term, explained the international agency.
After the year-on-year variation of economic activity in Panama fell from 3.7% to 2.9% between February and April, the indicator dropped to 2.4% in May.
Some of the categories of economic activity that showed good performance were: transportation, storage and communications, financial intermediation, public administration and electricity and water, informed the General Comptroller of the Republic.
The outlook for some economies in the region for 2019 is not the best: in Nicaragua GDP is expected to fall between 5% and 7%, while in Costa Rica the growth estimate at the end of the year was reduced from 3.2% to 2.2%.
The estimates of the Nicaraguan Foundation for Economic and Social Development (Funides), presented in its "Informe de Coyuntura - Julio 2019", indicate that by 2019 an economic contraction of between 5.4% and 6.8% will be reported in the country.
Arguing that the economy reports stable growth, and that a prudent management of monetary and fiscal policy has been made, the agency decided to maintain in Ba1, with a stable perspective, the country's credit rating.
The low fiscal deficit caused by strict controls on public spending and reduced indexes of public indebtedness, as well as a demonstrated economic resilience to extra-economic events, are other of Moody's arguments.
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