Economic Snapshot for Central America
May 21, 2020
Growth is seen ebbing slightly this year as weaker momentum in the Dominican Republic and Puerto Rico seems set to outweigh faster growth in Costa Rica and Panama. Downside risks stem from a potential faster-than-expected U.S. slowdown; social tensions in countries such as Haiti, Honduras and Nicaragua ; and a vulnerability to natural disasters.
Central America Monetary & Financial Sector News
Regional inflation increased from 2.1% in November to 2.4% in December on higher price pressures in the Dominican Republic and Guatemala. Inflation is seen rising somewhat this year on accommodative monetary stances and currency depreciation.
In recent weeks, the central banks of Costa Rica and Honduras cut rates to support economic activity against a backdrop of mild inflation. The other remaining central banks with independent monetary policies stayed put. This year, regional interest rates are seen staying close to current historically low levels as banks aim to boost moderate growth .
Over the last month, the Costa Rican colón appreciated somewhat, while the Dominican peso lost some ground and the Guatemalan quetzal was stable. This year, currencies should depreciate on persistent fiscal and current account deficits, in addition to political instability in some countries.
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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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Dominican Republic: Economic activity flatlines in Q1
May 15, 2020
According to preliminary data from the Central Bank, the economy flatlined in the first quarter, down from robust 5.8% growth in Q4.
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Costa Rica: Economy records slowest expansion since November 2009 in March
May 12, 2020
Economic activity increased 0.9% in year-in-year terms in March, which followed February's 1.3% increase.
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Guatemala: Inflation edges higher in April
May 8, 2020
Consumer prices rose 0.71% month-on-month in April, up from March’s 0.48% increase.
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Costa Rica: Inflation drops to lowest level since January 2017
May 7, 2020
Consumer prices fell 0.44% in April over the previous month, coming in below the 0.03% fall in March.
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Dominican Republic: Central Bank keeps rates unchanged in April
April 30, 2020
its end-April meeting, the Central Bank (BCRD) left its monetary stance unchanged, after substantial easing in March to combat the Covid-19 fallout.
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