Between the end of February 2020 and Easter Week, visits for shopping or recreational activities fell between 40% and 90% in Central American countries, with Panama recording the largest drop and Nicaragua the smallest.
Since the effects of the crisis generated by the spread of the covid-19 in Central America began to be felt, and more specifically, since mobility restriction measures were tightened, visits to shops in Central American countries have fallen dramatically.
Once the economies of Central America begin to relax the restrictions that have been adopted to prevent the spread of covid-19, sales of lotions and perfumes are predicted to decline by at least 4%.
Using a demand-income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project the variations that household demand for different goods and services will undergo as the most critical phases of the spread of covid-19 are overcome and the measures restricting mobility in the countries of the region are lifted.
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.
In Nicaragua, a decrease in the amount of cultivated land and a decrease in fertilization spending have caused a fall of between 25% and 30% in the sales projected by entrepreneurs in the sector.
According to figures from the Central Bank of Nicaragua, between the first half of 2017 and the same period in 2018, imports of fertilizers and agrochemicals in the country reported a reduction of 14%, falling from $102 million to $88 million.
In Nicaragua, retail companies estimate that the damages caused to their facilities and inventory, together with the drop in consumption, have already generated losses of $70 million.
In the same vien as the situation reported by companies in the tourism sector days ago, the Chamber of Commerce and Services of Nicaragua (CCSN) has reported that due to the crisis affecting the country, entrepreneurs engaged in commercial activities have recorded losses of approximately $10 million in their facilities, $26 million in damage to their inventories and $35 million in damages to consumption.
Foreign sales of electronics and the electrical sector fell by 19%, 3.6% in the food industry, 2.4% in the chemical and pharmaceutical industry, 9.2% in textiles, 7% in paper and cardboard, and 1.8% in rubber.
At the end of 2014 exports from the industrial sector amounted to $8.389 million representing $382 million less than in 2013, when revenues were $8.771 billion.
Taxing the income of companies that publish and sell books will speed up the deterioration of a market already affected by new technologies and lower consumption of books.
The tax package that the government intends to implement includes publishers, who will have to start paying income tax if the tax reform thrives in the Legislature. If this is the scenario, book prices will rise and in house publications will be further reduced, anticipate industry representatives.
Exports could fall as much as two percentage points due to infrastructure damage caused by Agatha tropical storm.
Even though trade has not stopped, damaged bridges and infrastructure are forcing companies to use alternate routes, increasing costs and time.
Carlos Amador, president of the Coordination Committee of Agricultural, Industrial, Commercial and Financial Associations, told newspaper Prensa Libre that “these difficulties makes us less competitive than other countries, and with perishable products, we can even fail to deliver the goods”.
In the first 11 months of the year, Salvadoran companies sold 24.57% less in average.
9 out of each 10 businessmen were affected by the economic crisis, according to a study conducted by Luis Membreño, independent economist.
From Laprensagrafica.com: "The drop ranges from 10% to more than 50%. 'It is a result of the population earning less money; less income and jobs', explained Membreño".
From January to August 2009, sales of goods dropped 5.8% when compared to the same period of 2008.
Data from the Tax Authority (SAT) shows that with the exception of January and April, monthly data has been always negative.
"Sales of services show a similar trend, albeit less steep...", reported Elperiodico.com.gt. "The Central Bank of Guatemala forecasts a drop of 1.5% in commerce, but this is considered too optimistic by businessmen".
Despite commercial efforts in promotions and discounts, consumer sales were down 4.3% in the first half of the year.
Commerce will shrink 1.5%, mainly because the 29% drop in imports, informed the Central Bank of Guatemala.
"Lack of customers has forced businesses to sell cheaper, reducing profits...", said César Estrada, president of the Chamber of Commerce and Services, in an article in Elperiodico.com.gt.
To attract clients and counteract the fall in sales, restaurants are offering additional entertainment options.
The crisis in El Salvador has pressured the gastronomic industry to be more creative in the way it attracts clients. Though establishments have experienced drops in sales between 10 and 15%, clients have returned demanding more, and they now request entertainment in addition to good food.