During November 2018, the Monthly Index of Economic Activity in the country reported a 2% year-on-year increase, which is less than the 3% increase recorded in October last year.
Compared with November 2017, most economic activities moderated their growth, which was reflected in the slowdown of the overall indicator. This result was determined by the deterioration in consumer confidence, a persistence of protest movements of some trade unions in opposition to the fiscal reform and problems in trade flows with Central America given the socio-political situation of Nicaragua, reported the Central Bank of Costa Rica.
During November 2018, economic activity in Guatemala reported a 3.3% increase over the same month in 2017, mainly because of the performance of wholesale and retail trade.
Because of the political crisis that began in Nicaragua in April, during the third quarter of last year the country's GDP fell by 4.5% compared to the same period in 2017.
The Central Bank of Nicaragua reported that in the third quarter of 2018, the economy registered a 4.8 percent year-on-year decline and a 0.5 percent annual average reduction.
"The tightening of global financing conditions is a concern for Central American countries with large current account deficits or those highly dependent on capital flows."
According to the report "World Economic Outlook - January 2019" compiled by the World Bank (WB), countries with a high external debt burden would be at risk if a sudden change in investor confidence in emerging market and developing economies were to occur.
According to the international organization, the Panamanian economy will grow 6.3% this year, boosted by the recovery of the construction sector and the start-up of operations of a large mining project.
In the words of the International Monetary Fund (IMF), the Central American country's economy is projected to remain among the most dynamic on the continent, as the outlook remains positive.
During the new year, the main challenge for Costa Rica's economy will be to increase above 3%, given that 2018 was marked by a context of fiscal uncertainty and economic slowdown.
According to the Central Bank of Costa Rica, economic growth, measured by the year-on-year variation of the trend cycle of gross domestic product (GDP), slowed last year, and recorded to the third quarter a 2.1% rate (3.2% in the same period of 2017 and 2.8% as the average rate of the two previous quarters).
The economic environment in 2018 was defined by a context of fiscal uncertainty, economic slowdown and greater financial volatility, together with a difficult external environment.
Regarding the fiscal uncertainty occupying a large part of last year's economic agenda, explains the Central Bank of Costa Rica (BCCR) which was originated, firstly, in the electoral process that lasted until April, and later in the difficulties faced to achieve an agreement that would help restore the sustainability of public finances in the medium term.
During the last year, the Caribbean economy increased 7.1%, a behavior that was caused by the dynamism of the Communications, Construction and Free Trade Zones sectors.
According to preliminary figures of the Monthly Indicator of Economic Activity (IMAE), the Dominican economy would close 2018 with a 7.0% average growth, because of an accumulated variation of 6.9% in January-September and a preliminary estimate of 7.1% in the last quarter of the year, informed the Central Bank of the Dominican Republic.
Excluding Nicaragua, the economies of Central American countries are projected to increase 2%, however, for the business sector some of the expectations may be too optimistic.
The 5.6% growth estimate for Panama is too optimistic for the private sector, as no major changes are expected compared to 2018.
Agriculture and communications largely determined the 3.1% increase recorded in the Gross Domestic Product during the third quarter of the year, compared to the same period in 2017.
During the third quarter of 2018, the out-of-season series of the GDPT showed a 0.7% increase in real terms, when compared to the level of the second quarter. With this, the GDPT increased 3.1% year-on-year, reaching an accumulated rate of 3.4% in 2018, informed the Central Bank of Honduras.
Higher domestic demand and increased investment are the factors that will influence the 3.3% growth forecast for the regional economy next year.
According to forecasts by the Economic Commission for Latin America and the Caribbean (ECLAC), in 2019 Panama will be the economy with the highest growth in Central America, with an expected rate of 5.6%.
Partly because of the dynamism of the construction and communications sector, in October the IMAE reported a 6.9% increase over the level registered during the same month of 2017.
The Central Bank of the Dominican Republic reported that the Monthly Economic Activity Indicator (IMAE) registered a 6.9% preliminary year-on-year variation during the January-October period, because of a 6.9% growth in the first nine months of the year and an annualized expansion of 6.7% in October.
During the third quarter of 2018, the constant Gross Domestic Product totaled $10.453 million, 3.6% more than that reported in the same period of 2017.
The activities related to the domestic economy this quarter were good: transport and communications, local wholesale and retail trade, financial intermediation, construction, real estate and business services, private education and health, and government services. To a lesser extent the supply of electricity and manufacturing industry were performed, reported the General Comptroller of the Republic.
This year, the economy is expected to grow 3.8% and in 2019 the increase could reach 5%, which would be determined by the activities of the Canal, transportation, mining and telecommunications.
The Indesa firm forecasts that next year Panama's economy will increase its dynamism compared to 2018, since the activities related to the external part will register good performance.
Transport, electricity and trade were again the sectors contributing the most to the 3% year-on-year increase in economic activity in October.
The Monthly Index of Economic Activity (IMAE) in the Republic, for January-October 2018, increased by 3.14% compared to the same period in 2017. The yoy variation referred up to October 2018 was 2.96%, compared to its equivalent of the previous year, informed the General Comptroller.
español
1614