In Guatemala, the Executive Branch presented a proposal to the Congress to expand the public budget by nearly $940 million, resources that would be used to recover the economy in the face of the unemployment that will be caused by the spread of the covid-19.
The authorities' plan is to save between 20% and 25% in order to allocate these funds to investment in strategic infrastructure such as ports, airports, the subway and viable projects such as the construction of the Transversal del Sur (TVS), a 110-kilometer stretch that would connect the port of Champerico, Retalhuleu, with Puerto Quetzal, on the coastal strip.
According to the IMF, in the first half of the year, the Salvadoran economy increased above the estimated potential, the inflation remained low and the fiscal position was better than expected.
From the International Monetary Fund statement:
An International Monetary Fund (IMF) team, led by Ms. Alina Carare, visited San Salvador from November 12 to 16, 2018 to discuss recent economic and financial developments.
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.
According to the Central Bank, Costa Rica's economy could grow 3.2% this year, less than was initially expected, and the fiscal deficit could reach 7.2% of GDP.
In its revision of the Macroeconomic Program 2018-2019, the Central Bank of Costa Rica (BCCR) foresees that this year's GDP growth will be 3.2%, below what was estimated in the Program presented at the beginning of the year, when the monetary authority projected growth of 3.6% at the end of the year.
In Guatemala, the National Competitiveness Policy has come into force, which aims to promote development through 11 economic clusters.
The Ministry of Economy reported that the National Competitiveness Policy, which is part of the 2018-2032 period, will focus on "... the 11 clusters chosen from a list of 25 that had been previously identified, those being: forestry, fruits and vegetables, processed foods, beverages, textile clothing and footwear, metalworking, light manufacturing, tourism and health services, TIC's software & Contact Centers, transport and logistics, construction."
In spite of the economic progress that has been achieved in Costa Rica, employment growth has stagnated, results in education are deficient, and anti-competitive regulations continue to hinder business development.
The latest OECD economic study on Costa Rica details the factors that support the significant socio-economic achievements of the last decades, as well as the pending challenges to ensure sustainable and more inclusive growth.
This year it is projected that growth in the Honduran economy will moderate to 3.7%, partly influenced by political uncertainty and less favorable external conditions.
From a statement issued by the IMF:
An International Monetary Fund (IMF) mission, led by Roberto Garcia-Saltos, visited Tegucigalpa during April 3-12 to conduct the 2018 Article IV consultation.
Supported by greater growth in the US economy, better monetary conditions and a moderate boost in government spending, growth should accelerate gradually until it reaches a rate of 3.6% in 2019.
The mission of the International Monetary Fund (IMF) recognizes the macroeconomic stability that has been achieved, but warns of a need to approve a fiscal reform that allows the tax burden to be increased to at least 15% of GDP, and allocate that additional income to public investment, especially in social development, particularly pre-primary education, preventive health care and greater pension coverage.
The plan proposed by the Morales administration to increase the country's competitiveness focuses on the development of forestry, agriculture, textiles, clothing and footwear, metalworking, light manufacturing, tourism and construction, among other things.
Authorities at the National Program for Competitiveness -Pronacom- presented guidelines for the National Competitiveness Policy 2018-2032. This set of strategies, which aims to establish guidelines on competitiveness at the national and regional level for the next 15 years, was developed jointly by the productive sector, public sector, academia and civil society.
In spite of the economic losses caused by climatic events that occurred in September, the Central Bank estimates closing 2017 with growth of around 5%.
The latest report from the Central Bank of the Dominican Republic (BCRD) indicates that the economy registered a year-on-year increase of 5.1% in August, and an accumulated increase of 4% in the first eight months of the year.
The best performing sector was the financial services sector, with growth of 9.8%, followed by trade, which recorded an increase of 5.8%.
From a report by the Central Bank:
The Central Bank of Nicaragua (BCN) published, on Thursday March 16, 2017, results of the estimate of Gross Domestic Product (GDP) for 2016.The results indicate that in 2016, GDP achieved a growth rate of 4.7 percent.
According to Fitch Ratings the reelection of Daniel Ortega as president of Nicaragua means stability in the country's economic policies.
EDITORIAL
Stability and economic and political continuity is what Fitch Ratings envisages for Nicaragua after the outcome of the presidential elections last Sunday, in which President Daniel Ortega was declared the winner, with 70% of the vote, according to a report by the Supreme Electoral Council.
Less investment, depletion of international reserves and contraction of public spending, in the opinion of Funides, are some of the effects that might be felt if the US Senate approves the bill.
The Nicaraguan Foundation for Economic and Social Development (Funides) has analyzed the potential impact of a possible US approval of the bill known as the "Nica Act", which aims to place conditions on the granting of loans by international institutions to the Ortega administration.
Lack of a "country agreement to escape the vicious circle of lack of growth, investment and employment, and excessive bureaucracy" continues to affect the business climate.
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:
A new proposal from the business sector aims not only to propose solutions to the fiscal problem but also strengthen productive areas in order to grow in a sustainable manner.
The National Association of Private Enterprise (ANEP) has summarized its proposals based on four pillars: economic growth, combating and reducing poverty, strengthening democratic institutions, and a pact on fiscal responsibility.
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