Explained by the behavior of the Financial Intermediation, Insurance and Pension Funds, and the Manufacturing Industry, during January the Monthly Index of Economic Activity increased by 3.8% with respect to the same period in 2019.
Most of the productive activities showed positive results in the first month of 2020, standing out for their contribution to the global indicator: Financial Intermediation, Insurance and Pension Funds; Manufacturing Industry; Post and Telecoms; and Commerce, informed the Central Bank of Honduras.
During January in Honduras, the Economic Activity Confidence Index registered a slight increase of 9% compared to what was reported at the end of 2019.
Informants said that the main factors that could influence the behavior of inflation during 2020 are: the increase in fuel prices and its impact on electricity rates, as well as price increases in some food and certain raw materials, explains a report by the Central Bank of Honduras.
During November 2019, the IMAE registered a 2.6% year-on-year increase, largely because of the performance of Financial Intermediation and the Manufacturing Industry.
As of November 2019, the volumes produced of goods and services in the country registered a 2.6% increase, with respect to the same period in 2018 (3.7%), according to the original IMAE series; while the cycle trend series denotes a recovery for the second consecutive month, by growing 2.5% year-on-year (3.7% in 2018).
During December 2019 in Honduras, the Economic Activity Confidence Index registered a 33% decrease with respect to what was reported at the end of 2018.
Analysts said they expect that the slower evolution of the world economy and adverse weather conditions could continue to affect the growth of the Honduran economy, reported the Central Bank of Honduras.
Agriculture, livestock, forestry and fisheries, and financial intermediation largely determined the 2.4% increase in GDP in the third quarter of last year, compared to the same period in 2018.
Agriculture, Livestock, Forestry and Fishing registered a 2.6% increase, mainly because of the rise in the Gross Added Value (GVA) of coffee cultivation as a result of reseeding, maintenance and fertilization in the farms during the third quarter, informed the Central Bank of Honduras (BCH).
During October, the IMAE registered a 2.7% year-on-year increase, largely because of the performance of the manufacturing industry and the commercial sector.
The original series of the Monthly Economic Activity Index (IMAE) reflects that, up to October 2019, the national production of goods and services, in terms of volume, grew 2.7% (3.7% in the same period of 2018), reported the Central Bank of Honduras (BCH).
During September, the IMAE registered a 2.7% year-on-year increase, mainly because of the performance of Construction and Commercial Activity.
At the end of the third quarter of the current year, the original IMAE series reached 2.7% cumulative variation (3.5% in the same period in 2018). Meanwhile, the trend cycle series showed a 2.2% year-on-year variation (3.8% in September 2018), reported the Central Bank of Honduras.
During August, the IMAE in Honduras registered a 2.4% year-on-year increase, largely because of the performance of financial intermediation, insurance and pension funds.
The economic activities with positive behavior were: Financial Intermediation, Insurance and Pension Funds, Mail and Telecom, Manufacturing Industry and Commerce, to a lesser extent contributed Private Construction and Electricity and Water, reported the Central Bank of Honduras (BCH).
After reporting falls in previous months, during September 2019 in Honduras the Economic Activity Confidence Index registered a 4% increase with respect to August.
Analysts showed that the main indicators that measure economic performance are positive, they expect that with the proximity of the Morazán Week and the Christmas season the economy will dynamize, informed the Central Bank of Honduras.
After the economies of the region grew by 2.6% in 2018 as a whole, the IMF estimates that 2019 would close with a rise of 2.7% and could reach 3.4% by 2020.
The document "World Economic Outlook", prepared by the International Monetary Fund (IMF), states that for Panama the projected growth of the Gross Domestic Product (GDP) for 2019 was reduced from 5% to 4.3%.
Up to July of this year, economic activity in the country grew 2.8%, slightly higher than the 2.5% recorded in the previous month.
The economic activities highlighted for their contribution to the overall result of the indicator were: Financial Intermediation, Insurance and Pension Funds, Post and Telecom, Commerce and Manufacturing Industry, as well as Private Construction and Electricity and Water, reported the Central Bank of Honduras.
Understanding the economic environment the company is facing, generating projections in real time and having the opinion of external consultants to the organization, are some of the strategies that could help companies in times of low sales.
In Central America, during the first half of the year, some economies reported declines in their productive activity. The most difficult case is Nicaragua, where economic activity has collapsed 7% in the last year. However, other countries face adverse situations, such as Costa Rica, whose level of economic activity has shown a downward trend over the last year and a half.
In August, the Index of Confidence in Economic Activity registered a 7% decrease with respect to the previous month, a drop that complements the inter-monthly drop reported in July of this year, which was 17%.
According to those consulted, factors such as the lack of political consensus, weakening of institutional credibility and the social panorama are elements that affect the business environment, reported the Central Bank of Honduras (BCH).
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.
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