As a result of the economic slowdown and the imbalance in public finances, Costa Rica faces a complex and high-risk future, in which the margins for action and maneuver will be increasingly limited.
The State of the Nation 2019 report explains that the economic slowdown and imbalance in public finances created a scenario of great complexity and risk, both economic and political, which aggravated the structural weaknesses or "blind spots" of the national development style.
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.
The State of the Nation 2018 Report explains that during 2017 and the first months of 2018 the progress of Costa Rica's economy has been adverse and, in the short term, the prospects for economic opportunities, solvency and stability are negative.
Most of the drivers of Costa Rica's economy have declined in recent months, resulting in Costa Rica going through a period of multiple economic and political risks.
The region is expected to conclude 2018 with a rise of just over 4% in the volume exported and just 3.6% in value, due to the fall in international prices of several agricultural products.
According to the International Trade Outlook for Latin America and the Caribbean 2018, published by the Economic Commission for Latin America and the Caribbean (ECLAC), it is expected that this year Central America will export larger volumes at lower prices.
Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.
The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.
The 4.6% growth in activity in the agricultural sector accounted the most for the meager increase of 2.4% in GDP last year.
From a statement issued by the Central Bank of El Salvador:
The Salvadoran economy has maintained its good economic performance, growing above historical averages, as at the end of 2016 growth of 2.4% was reported, while for 2017 it is expected that the rate will be 2.3%, according to the Central Bank.In addition to the preliminary results recorded in 2016 and the revision of 2015 data, the institution presented the economic growth projections for the years 2017-2019.
Funides projections for conditions in 2016 are similar to those of 2015 and it estimates that the economy will grow by between 4.5 and 4.7%.
From the executive summary of the "First Economic Situation Report for 2016 " by Funides:
Growth projections for the world economy in 2016 have decreased from 3.4 to 3.2 percent according to the latest projections by the International Monetary Fund.
The performance of the financial and insurance sector accounted for most of the 3.7% growth in national economic activity between January and November 2015.
From a report issued by the Central Bank of Honduras:
During the period from January to November 2015, domestic production of goods and services monitored through IMAE -in the original series showed growth of 3.7% 2 / (2.6% in 2014).
The financial and manufacturing sectors accounted for most of the year´s growth of 3.5% in the index of economic activity in September 2015.
From the Monthly Index of Economic Activity report by the Central Bank:
At the end of the third quarter of 2015, production of goods and services, according to the IMAE original series, presented a variation of 3.5% (2.7% in the same period in 2014); and its trend cycle reported a variation of 3.8% 3.
High debt and slow economic growth continue, although only slightly higher than in 2014, due to the fall in oil prices.
From a statement issued by the Salvadoran Foundation for Development (FUSADES):
The third quarter of 2015 continued to show slow growth, but slightly higher than in 2014, due to the fall in oil prices. Low growth translates into few jobs, which together with the increases in food prices, adversely affects poverty.
The GDP growth projection of 4.5% for 2015 reflects the positive effect of increased investment and the reduction in oil prices.
From a statement issued by the Nicaraguan Foundation for Economic and Social Development (Funides):
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) projects in its first Economic Situation report of the year that in 2015 the economy will grow by 4.5%.
In February, the annual growth rate of economic activity was 2.2%, making this the tenth consecutive month of slowdown.
From a statement issued by the Central Bank of Costa Rica (BCCR):
In the first two months of 2015 the country's production, measured by the cycle trend of the Monthly Index of Economic Activity, grew by 2.4% (3.5% in the same two months in 2014). The annual rate in February was 2.2% (3.7% in February-14).
The fastest growing sectors were transport and communications, with 7.4%; personal and business services with 5.9%; trade, hotels and restaurants, 5.5%; Manufacturing 5%, and agriculture, 4.4%.
From a statement issued by the Central Bank of Nicaragua:
The Central Bank of Nicaragua (BCN) wishes to make public knowledge that it is expected that economic activity in the country at the close of 2014 grew by 4.7% (4.5% in 2013) as a result of more buoyant demand and aggregate supply.
The economy registered a growth of 3.9%, mainly due to the performance of the sectors of Insurance and Pension Funds, Agriculture and Manufacturing.
From a report by the Central Bank of Honduras:
In January 2015, the national economy, monitored through the Monthly Index of Economic Activity (IMAE) in the original series, recorded annual change of 3.9% (1.8% in the same month in 2014).
In the first month of the year, the economy grew by 5.8%, driven mainly by the sectors of fisheries, transport, storage and communications and construction.
From a report issued by the Comptroller General of the Republic:
The Monthly Economic Activity Index (IMAE) in the Republic, up to January 2015, measured in terms of the original series in 1996, saw prices grow by 5.8% compared to the same period in 2014.
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