In the first nine months of the year, the Volume Index of Economic Activity and the sales indicator of FUSADES reported positive variations, however, they are lower compared to what was recorded in the same period of 2018.
According to the "Economic Situation Report up to November 2019", prepared by the Salvadoran Foundation for Economic and Social Development (FUSADES), the Salvadoran economy has experienced a tendency to lose dynamism, in the second quarter of 2019, economic activity grew only 1.98%, which is lower than the 2.71% recorded a year ago.
The sales indicator declined during the first quarter and economic activity lost dynamism up to February, because of the adverse international environment and growing uncertainty.
The Sales Indicator of the Salvadoran Foundation for Economic and Social Development (FUSADES), reported a negative variation in the first quarter compared to the same period in 2018, going from 16.5 to -7, which is explained by the behavior of the four economic sectors surveyed, reported the Foundation.
Low growth of the local economy, low generation of formal jobs, deterioration of fiscal indicators derived from the rise in the deficit and public debt, are some of the factors that have been reported during 2018.
The Salvadoran Foundation for Economic and Social Development (Fusades) presented the Economic Situation Report up to November 2018, in which an analysis of the country's situation is presented.
Slow growth in credit, imports of final consumer goods and tax collection are strong indicators of a decline in domestic demand.
According to the Economic Situation Report October-2018 of the Central Bank of Costa Rica (BCCR), the local economy is increasing as predicted in its macroeconomic programming, and inflation is kept within the target range. However, there are some indicators of deceleration in domestic demand (including slow growth in credit, imports of final consumer goods, and tax collection).
Informality in the labor sector, low levels of taxation and little investment in innovation and development are some of the obstacles the country is facing in terms of competitiveness.
The Ministry of Economy presented the "First National Competitiveness Report", which analyzes more than 200 indicators obtained from indices prepared by international organizations such as Doing Business, Competitiveness Index, Trade Facilitation, Global Innovation, Connectivity and Index of Performance of Energetic Structure.
Figures from Funde detail that last year FDI totaled $445 million, and in March 2018 economic activity grew by 2%.
The National Development Foundation (Funde) presented the results of the report "Economic and fiscal situation 4th year of the administration 2014-2019", and among the main conclusions of the study is that "...El Salvador remains behind as a recipient of resources Direct Foreign Investment in Central America, even though Guatemala and Nicaragua had falls in net inflows in 2017."
According to business sector estimates, this year the Panamanian economy will grow around 5.4%, below the rate of 6.5%, considered optimal.
The Center for Economic Studies at the Chamber of Commerce, Industries and Agriculture of Panama (CEECAM), has prepared a study detailing Panama's economic performance, a review of sector indicators and economic and business expectations.
Fusades' most recent report points to the loss of 33,000 formal jobs between November 2016 and March this year, the second biggest drop in the last 25 years.
From the report by Fusades:
At the end of 2016 and early in 2017 there is clear deterioration in the country's economic conditions, which was reflected in the loss of 33,110 formal jobs between November 2016 and March 2017 and in the default of public debt in April 2017.
After the contraction recorded in 2016, forecasts are that investment in construction and machinery will recover towards the end of 2017 and 2018, reaching an estimated growth rate of 9%.
In 2016, there was a drop in construction and investment in machinery and equipment, compared to 2015. Therefore, FUNIDES projects that the investment will recover, estimating an investment growth rate of 9 percent by the end of 2017 and 2018.
Although the gradual process of credit dedollarization continues, the Central Bank has warned that a preference remains on the part of savers for instruments denominated in foreign currency.
From a statement issued by the Central Bank of Costa Rica:
The Board of Directors of the Central Bank of Costa Rica, in article 12, session 5768-2017, of April 26, 2017, according to the provisions of its Organic Law and based on an analysis of the international and national economic situation, decided to increase the level of the Monetary Policy Rate (TPM) by 25 basis points (bp) to 2.50% as of April 27 of this year.
Although emphasis was given to the momentum taken in the fight against corruption in 2016, lack of legal certainty continues to affect conditions for doing business in the country.
From a report on the Legal and Institutional Situation by the Salvadoran Foundation for Economic and Social Development:
The report is divided into 3 chapters, in which an analysis is undertaken of the most important issues that occurred during the semester relating to the rule of law, transparency, security and the business climate.Among the most noteworthy findings, the following are mentioned:
The activities that had the most influence on the inter annual increase were Fisheries and Aquaculture, with an increase of 50%, and hotels and restaurants, with an increase of 15%.
From the report on the Monthly Index of Economic Activity:
In December, the monthly index of economic activity (IMAE) grew by 4.9 percent compared to December 2015.The annual average change was 4.4 percent, the same as the accumulated growth rate.[GRAFICA caption = "Click to interact with graphics"]
The economic activity index recorded an annual increase of 4.6% in November, mainly due to the activities of Trade and Transport and communications.
From a report issued by the National Institute of Statistics and Census:
The Monthly Economic Activity Index (IMAE) in the Republic for January-November 2016, measured in terms of the original series in 1996 prices, grew by 4.42 percent compared to the same period in 2015.
The activities that were the most responsible for the increase were Fisheries and Aquaculture with 26%, and Mining and Quarrying with 15%.
From the report on the Monthly Index of Economic Activity:
In November, the monthly index of economic activity (IMAE) grew by 5.5 percent compared to November 20152.The annual average change was 4.4 percent and the cumulative growth from January to November was 4.3 percent. [GRAFICA caption = "Click to interact with graphics"]
Activity in the commercial sector accounted for most of the growth in the index for economic activity in October, which in respect to the same month in 2015 registered an increase of 2.3%.
From a report by the Bank of Guatemala:
Economic activity measured by estimating the IMAE, up to October 2016, showed growth of 2.3% 1 (4.9% in October 2015).This result was driven by the positive performance experienced mainly the following economic activities: Wholesale and retail trade ; Private services; Transport, storage and communications; and Manufacturing Industries.
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