If the international prices of bananas, coffee, sugar and palm oil do not improve, and if combined with a global economic recession, Guatemala, Honduras and El Salvador could stop exporting as much as $2.268 million altogether in 2021.
According to the report "Proceso de integración Centroamericana del Triángulo Norte: Escenarios de riesgo en la matriz de exportación" (Central American Integration Process of the Northern Triangle: Risk Scenarios in the Export Matrix), prepared by the Asociación de Investigación de Estudios Sociales (Asíes), garment making is another activity that could be affected in the coming years.
Avoiding hurried discounts, managing price increases according to costs and improving cash flow are some of the strategies that companies can resort to protect their profitability in contexts of inflation and recession.
Ariel Baños, a price management specialist and founder of Fijciondeprecios.com, explains four strategies for maintaining profitability when companies face scenarios of rising prices and low dynamism in economic activity.
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.
Making real sales projections, segmenting prices and designing savings options are some of the strategies that companies can use to protect their profitability in contexts of inflation and recession.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, details techniques that could help companies avoid negative effects on their finances, when faced with scenarios of rising prices and low dynamism in economic activity.
The business sector indicates that the country is going through a deep fiscal, economic, social, institutional and public security crisis.
From a statement issued by the National Association of Private Enterprise (ANEP):
The business sector agrees with the feeling of the population expressed in surveys and different areas of opinion regarding the fact that the country is going through a deep fiscal, economic, social, institutional and insecurity crisis.
Newland International Properties has asked the holders of its bonds to authorize the filing of Chapter 11 of the U.S. Bankruptcy Code
The company has initiated an application for votes so that it can submit a restructuring plan for the company's Senior Secured Notes for $220 million, with the Bankruptcy Court of the United States.
Carlos A. Saravia, the developer's CEO, said that the sale of units in the project was affected by the impact of the financial crisis on potential customers and in the second homes market.
The constant deceleration of the Volume Index of Economic Activity (IVAE in Spanish), is a clear sign that the country's economy could end 2012 in recession.
Data reported by the Central Reserve Bank (BCR) up until August indicates that the IVAE that only grew by 0.7% compared to 3.4% reported in the same period of 2011.
"The Volume Index of Economic Activity (IVAE), calculated each month by the Central Reserve Bank (BCR), reveals the trend of the country's economy over a short period of time.
FMI: "Recessions associated with financial crises tend to be severe. Recoveries from such recessions are typically slow."
If such recessions are globally synchronized then they tend to last even longer and be followed by recoveries that are even weaker.
Countercyclical policies can be helpful in ending recessions and strengthening recoveries. In particular, expansionary fiscal policies seem particularly effective.
FMI: "Recessions associated with financial crises tend to be severe. Recoveries from such recessions are typically slow."
If such recessions are globally synchronized then they tend to last even longer and be followed by recoveries that are even weaker.
Countercyclical policies can be helpful in ending recessions and strengthening recoveries. In particular, expansionary fiscal policies seem particularly effective.
According to the Central Reserve Bank, the negative growth behavior of most economic indicators put the country on the brink of a recession.
Elsalvador.com published: "In February 2009, there were two consecutive quarters with the negative growth of the Economic Activity Volume Index (IVAE), and other variables with which we measure the country's macroeconomic performance and the trend point to a continual decline.
The new government of El Salvador faces a difficult economic reality
El Salvador elected a new president on March 15. Mauricio Funes of theFMLN party will take the presidency in what appears to be a difficult adjustment period for the global economy and particularly for El Salvador because it will have to face a disproportionate impact from the US recession and narrow external liquidity conditions.
From September 2008 to February 2009, Costa Rica received 82 thousand less tourists than during the same period the previous year.
The aggregate of tourists for the country’s two international airports for the semester ending in February 2009 was 885 thousand, 8% lower than the figure of 967 thousand recorded during the same period in 2008.
The nacion.com website published: "Carlos Ricardo Benavides, Minister of Tourism, said that the situation 'did not take us by surprise nor were we sleeping.' He added that a budget of $20 million for promotion was prepared this year for this very reason."
The Economist’s Unit of Economic Intelligence revised its growth estimate which was at 3.4% for 2009 downward, fixing it at minus 1.4%.
The forecast for 2010 is a slight recovery of 1.4% over 2009. The report also predicts victory in the upcoming presidential elections for opposition candidate Ricardo Martinelli.
With regard to this report, the Ministry of Finance signaled that it had possibly "(not taken) into account the financial incentive program recently announced by President Martín Torrijos.”
Global Economic Slump Challenges Policies. World growth is projected to fall to ½ percent in 2009, its lowest rate since World War II.
Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy. A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged.
Global Economic Slump Challenges Policies. World growth is projected to fall to ½ percent in 2009, its lowest rate since World War II.
Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy. A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged.
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