Economic Snapshot for Central America
December 4, 2019
Growth is seen slowing slightly next year as a loss of momentum in the Dominican Republic and Puerto Rico will outweigh faster growth in Costa Rica and Panama. Downside risks stem from potential social unrest—particularly in Haiti, Honduras and Nicaragua—and a vulnerability to natural disasters.
Central America Monetary & Financial Sector News
Regional inflation was stable at 1.8% in October. Lower inflation in Costa Rica and Honduras was offset by higher price pressures in the Dominican Republic and Guatemala. Inflation is seen rising somewhat next year on accommodative monetary stances and currency depreciation. Volatile oil prices remain a key risk to the outlook.
All was quiet on the monetary policy front in recent weeks, with central banks staying put. Regional interest rates are seen staying fairly steady next year, following a spate of rate cuts in 2019 to bolster economic activity against a mild inflation backdrop and looser monetary policy by the Federal Reserve.
Over the last month, the Costa Rican colón and Guatemalan quetzal appreciated on encouraging economic activity data, while the Dominican peso lost some ground. Going forward, most currencies should depreciate due to a mixture of persistent fiscal and current account deficits, and political instability in some countries.
Sample Report
5 years of Central America economic forecasts for more than 30 economic indicators.
Central America Economic News
Panama: Consumer prices end year in deflationary territory
January 15, 2020
Consumer prices dropped 0.2% in December on a month-on-month basis, following a flat reading in November.
Guatemala: Growth in economic activity eases in November
January 10, 2020
Growth in economic activity eased to 3.4% in November from 3.7% in October.
Guatemala: Economic growth accelerates in Q3 2019
January 10, 2020
Economic growth accelerated to 4.0% year-on-year in the third quarter of 2019, up from 3.5% in the second quarter and marking the third consecutive quarter of stronger economic growth.
Guatemala: Growth in remittances picks up in December
January 10, 2020
Remittances from workers abroad grew 11.6% year-on-year in December, up from the 8.3% increase registered in November.
Costa Rica: Economic momentum gathers in November
January 10, 2020
Annual economic growth in cyclically-adjusted terms accelerated to 2.9% in November from 2.7% in October, representing a 16-month high.
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