Economic Snapshot for Central America
February 19, 2020
Regional economic growth is expected to decelerate slightly this year, due to slower growth in. Economic activity is seen losing some dynamic in the Dominican Republic, and Guatemala, and while growth in Puerto Rico is expected to soften markedly. Key downside risks to the outlook include a stronger-than-expected moderation in the U.S., social tensions and a vulnerability to natural disasters.
Central America Monetary & Financial Sector News
Average inflation in the region eased from 2.4% in December to 2.3% in January according to a preliminary estimate, on deflation in El Salvador and much milder inflation in Guatemala. This offset stronger inflation in the Dominican Republic and Honduras. This year, inflation is expected to rise owing to currency weakening.
Monetary policy was eased in recent weeks in Honduras and Costa Rica to support economic activity, while the Central Bank of the Dominican Republic left its rate unchanged. This year, the regional interest rate is expected to stay low in order to support economic activity.
In recent weeks, the Dominican peso and the Honduran lempira depreciated against the USD. On the other hand, the currencies of Guatemala and Costa Rica strengthened against the greenback. Persistent twin deficits and political instability in some countries are seen weighing on the regional exchange rate this year.
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5 years of Central America economic forecasts for more than 30 economic indicators.
Central America Economic News
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Costa Rica: Central Bank cuts rates and shakes up its monetary policy in January
February 17, 2020
At its 29 January monetary policy meeting, the Central Bank of Costa Rica (BCCR) reduced the monetary policy rate (MPR) to 2.25% from 2.75%, which marks a near three-year low and the eighth rate cut since last March.
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Panama: Consumer prices inch up in January
February 14, 2020
Consumer prices rose 0.1% in January on a month-on-month basis, following a 0.2% decline in December.
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Costa Rica: Economic momentum gathers in December
February 11, 2020
Annual economic growth in cyclically-adjusted terms accelerated to 2.8% in December from November’s downwardly revised 2.7% (previously reported: +2.9% year-on-year), representing the highest reading in nearly one-and-a-half years.
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Guatemala: Growth in economic activity eases in December
February 10, 2020
Growth in economic activity eased to 3.1% in December from an upwardly revised 4.0% in November (previously reported: +3.4% year-on-year).
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Guatemala: Inflation eases in January
February 10, 2020
Guatemalan consumer prices fell 0.24% month-on-month in January, contrasting the 0.60% monthly increase registered in December.
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