In the first five months of this year, the country received $2.346 million in family remittances, 9.6% more than in the same period in 2018.
Figures from the Central Bank of Honduras show that between January and May 2018 and the same period this year the flow of family remittances grew by $206 million, from $2.140 million to $2.346 million.
After the country was put back on the FATF grey list, the private sector believes that investments will be driven away and economic growth will face multiple obstacles.
After the Financial Action Task Force (FATF) decided to include the country in the list of nations that need to be supervised in the process of implementing measures to prevent money laundering and the financing of terrorism, entrepreneurs from different sectors foresee that the effects will be negative for the local economy.
Financial Intermediation and the Manufacturing Industry determined to a large extent the 3.5% increase registered in the Gross Domestic Product during the first quarter of the year, with respect to the same period of 2018.
After the year-on-year variation in economic activity fell from 3.7% to 2.9% between February and March, the rise in April was again 2.9%.
The Monthly Index of Economic Activity (IMAE) in the Republic grew by 3.29% for January-April 2019 compared to the same period in 2019. The monthly year-on-year variation referred to April 2019 was 2.94%, compared to its similar of the previous year, reported the General Comptroller of the Republic.
During the fifth month of the year it was forecast that the Confidence Index of Economic Activity was higher than the one reported in April, where 47% is explained by the result of the current confidence index and 53% by future activity.
After more than 40 days of protests and looting, Honduran businessmen report that about 50 companies have been affected, and several stores have already been closed.
Preliminary reports from the Chamber of Commerce and Industry of Tegucigalpa (CCIT), establish that among the most affected businesses are supermarket chains, appliance stores, fast food restaurants and microenterprises dedicated to the marketing of clothing and footwear.
After 14 months of socio-political crisis in Nicaragua, companies in the country face a reduction in consumption and investment, as well as the impact on national economic activity of rising unemployment.
According to studies conducted by the Consejo Superior de la Empresa Privada (COSEP) and the Nicaraguan Foundation for Economic and Social Development (FUNIDES), the local economy faces a contraction in economic activity that continues to deepen, prevailing uncertainty and distrust in consumers and investors.
During the first three months of the year, foreign direct investment flows in the country totaled $1.648 million, 18% more than in the same period of 2018.
The report of the Economic and Social Analysis Directorate of the Ministry of Economy and Finance (MEF), states that between the first quarter of 2018 and the same period of 2019, the amount of Foreign Direct Investment (FDI) grew by $254 million.
Arguing that deflationary forces persist and that a low rate of economic activity is reported, the Central Bank decided to reduce the Monetary Policy Rate to 4.50%.
This is the third reduction made by the Central Bank of Costa Rica (BCCR) so far this year, since at the end of March it decided to reduce the monetary policy rate from 5.25% to 5% and in May from 5% to 4.75%.
For Fitch Ratings, the results of the General Elections in Guatemala put at risk the approval of reforms necessary for the development of the country, since the next legislature will be composed of deputies from 15 different political parties.
The deputies to the Congress of the Republic who were elected for the 2020-2023 period and who will take office on January 14, 2020, will have the challenge of directing efforts from the legislative in the area of economic development.
Moody's kept the rating of long-term issues and senior unsecured bonds at B1, arguing that there is a "solid fiscal framework that has stabilized debt at lower levels compared to its rated peers.
Honduras' fiscal balance behaves favorably with respect to GDP and has been enough to stabilize overall government debt at around 41% of GDP, Moody's report explains.
During the first quarter of the year, constant GDP totaled $10.599 million, 3% more than reported in the same period of 2018.
Transport and communications, financial intermediation, electricity and water supply, construction and government services provided good performance during this period, according to the Comptroller General of the Republic.
As of April, economic activity in the country registered a 2.7% year-on-year increase, an increase mainly due to the behavior of financial intermediation.
Financial Intermediation, Insurance and Pension Funds grew 6.9% during the fourth month of the year, a result caused by the positive behavior of Financial Intermediation (7.1%), sustained by the increase in interest received on the portfolio of loans and commissions on credits granted, as well as by the use of credit cards, explains the report of the Central Bank of Honduras.
During the first five months of the year, the country received $2.281 million in remittances, 4% more than reported in the same period of 2018, well below the 9% rate reported from January to May 2018.
El Salvador received $2.281 million in family remittances up to May 2019, higher by $84.4 million, equivalent to a 3.8% year-on-year growth with respect to income received under this concept in the same period of the previous year, informed the Central Reserve Bank.
Between April and May of this year, the inflationary rhythm grew from 4.9% to 5.1%, mainly because of variations in the prices of fuels, some services and certain foods.
The items with the highest contribution to monthly inflation were: "Housing, Water, Electricity, Gas and Other Fuels" with 0.09 percentage points (pp); followed by "Transport" and "Food and Non-Alcoholic Beverages" with 0.08 pp, each and "Clothing and Footwear" with 0.04 pp (together contributing 80.6% to monthly inflation). Likewise, the groups "Personal Care" and "Furniture and Household Maintenance Items" each contributed less, with 0.02 pp, and "Health", "Recreation and Culture" and "Hotels, Cafeterias and Restaurants" with 0.01 pp, each.
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