Central America Economic Forecast

Economic Snapshot for Central America

September 14, 2022

Economic Growth

Regional GDP is expected to grow at a softer pace in 2022 amid a tougher base effect, tighter financial conditions and the global echoes of the war in Ukraine. Elevated price pressures, fueled by higher commodity prices, will likely cap consumer spending. That said, lower unemployment rates and solid remittances should provide some respite.

Inflation Outlook

Regional inflation rose to a fresh series-high of 8.8% in July (June: 8.6%)  due to price increases in the majority of countries. That said, inflation started to ease in the Dominican Republic, El Salvador, Panama and Puerto Rico. Although inflation is set to slow from current levels in 2022, it is expected to remain elevated.


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