Central America Economic Forecast

Economic Snapshot for Central America

June 16, 2022

GDP growth will moderate in 2022

Regional economic growth should moderate in 2022 as a tougher base effect, tighter monetary policy and the impacts of the war in Ukraine weigh on activity. Rising global energy and food commodity prices are pushing up inflation, denting consumer spending and remittance inflows. However, lower unemployment levels should support private consumption somewhat. 

Inflation to rose in 2022

Preliminary data points to a further rise in price pressures, with inflation rising to a record high of 7.7% in May (April: 7.3%).  The print was driven by higher inflation in all countries with available data, barring the Dominican Republic. This year, higher energy and food commodity prices will keep inflation elevated.


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