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.
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.
In July, the Confidence Index of Economic Activity registered a 17% drop with respect to May, where again 49% is explained by the result of the current confidence index and 51% by future activity.
The consulted ones indicated that the potential negative impact of the unfavorable external conditions and the fall of prices of some products of exportation in the evolution of the national economy, as well as aspects related to the climate of businesses and its incidence in the new investments, informed the Central Bank of Honduras (BCH).
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 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.
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.
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.
Because of the slowdown in the economy and the entry into force of new taxes, in 2020 is expected a slight growth of 1% in the number of franchise brands in Costa Rica.
In the last year, the growth in the number of franchises reported a significant slowdown, since the figures of the guild specify that up to May this year the net number of brands reached 361, a value that exceeds by just 0.6% the 358 registered in the same month of 2018.
Economic activity in the country registered a 2.7% year-on-year increase up to May, an increase that is explained in part by the behavior of Trade in goods and services, and private Construction.
For the fifth month, the economic activities that stood out for their contribution were: Financial Intermediation, Insurance and Pension Funds, Post and Telecommunications, Commerce, Manufacturing Industry, Electricity and Water, and Private Construction, reported the Central Bank of Honduras.
In Costa Rica, the Monthly Economic Activity Index reported a 1.3% year-on-year increase in May, one of the lowest growth rates reported in recent years, since a similar variation had not been registered since November 2013.
The trend series of the Monthly Index of Economic Activity 1 registered in May 2019 a 1.3% year-on-year growth, which is lower by 2 percentage points (p.p.) to the same month of the previous year and by 0.2 p.p. to the previous month, informed the Central Bank of Costa Rica (BCCR).
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