The State of the Region Report is a tool by Central America for Central America, which analyzes and tracks the major challenges of sustainable human development. In this fourth report, the titles of the main conclusions on the topic Economy are presented:
- Intra-regional migration is concentrated between Nicaragua and Costa Rica
The main intra-regional migration flow originates in Nicaragua and goes to Costa Rica, and involves around 315,000 people.
- International Crisis has generated to varying degrees an economic downturn
High levels of economic growth achieved in Central America failed to translate into commensurate levels of social progress and were rapidly reversed, due to the strong international economic downturn at the end of the last decade. These results confirm the persistent inequality that tends to concentrate in production and income opportunities in a few segments of the population.
- Slow progress in tax collection
Most of the tax administration reforms implemented during the last decade have been partial, with limited results, and have responded to the fiscal pressures of the moment, rather than having the intention to strengthen tax systems from the standpoint of economics and equity. Tax evasion remains a common problem.
- Public debt in the region is falling but the trend is not guaranteed for the future
The public debt of the region showed a downward trend, which led to a reduction of 17.5% of GDP between 2004 and 2007, mainly due to a drop of 15% of GDP in external debt. However, this trend began to reverse in 2009.
- Trade openness increases in the region
In the expansion phase (2004-2007) remittances offset the deteriorating exchange rates. Nearly 81% of exports from Central America, not including the maquila sector, are covered by a free trade agreement (FTA) currently in force or in the process of ratification or newly negotiated, such as the Agreement with the European Union. Taking into account the total exports, the percentage is 86%. Imports reached about 70% and 73% respectively.
- Services reported better results
During the economic expansion (2004-2007), the most dynamic areas in real terms were related to private services, particularly financial, transport and communications. This was due largely to increased trade liberalization and its effect on cross-border trucking services and the liberalization of the telecommunications market in various economies and the entry of new financial operators in the region.
- Tourism experienced a sharp contraction
In the last decade, foreign exchange earnings from tourism in Central America showed a similar pattern to exports of goods. In 2004-2007 there was a major expansion for the region in general (12.7%) and Panama, Guatemala and Belize in particular.
- Intra-regional exports grow more than the extra-regional
Intra-regional exports performed better than those outside the region. During the first decade, they grew at an average annual rate of 8.5%, while the latter grew at 5.3%.
Source: Estado de la Nación
More on this topic
September 2008
A realistic look at the challenges of sustainable human development in Central America.
How is Central America doing?
A realistic look at the present and future.
The State of the Region Report is an instrument from Central America and for Central America. It purpose is to provide a follow-up to the challenges of sustainable human development in the region.
November 2010
In the Global Human Development Index 2010, Panama is ranked 54, Costa Rica 62, El Salvador 90, Honduras 106, Nicaragua and Guatemala 115 and 116 respectively.
The Central American countries, like others in Latin America, continue to improve in most variables measuring human development and the HDI Program published by the United Nations Development Program (UNDP).
November 2010
Sixteenth "State of the Nation" report covering Sustainable Human Development.
The Sixteenth report announces major findings and follows up on trends identified in areas covered by each of its chapters:
Equity and social integration
-Accumulation of capacity in 2009
-Inequality, poverty and social exclusion
November 2011
"The country has entered a new and more dangerous phase, a clear erosion of some of the most precious historical advantages of human development."
Synopsis of the Seventeenth Report of the Nation on Sustainable Human Development:
When examined closely, 2010, a year without dramatic events, seemingly calm, reveals the seriousness of the problems experienced by human development in Costa Rica.
español
1895
