Gross Domestic Product (GDP)
in Central America
Thursday, February 2, 2012
Two years ago we used the same title to report on the growing trend of the debt / GDP ratio in Costa Rica. Today the news is that this ratio has reached nearly 50%.
The consequences are as you would expect: upward trend in interest rates because the state must meet its cash needs competing for credit with the productive sectors, and reduced state investment, especially in infrastructure, which compromises the ability of the economy to grow.
Thursday, January 19, 2012
Natural disasters and other factors have influenced the situation in 2011; agreements with the IMF are to be reviewed.
Salvadoran state expenditures were $900 million more than the total revenues in 2011, according to preliminary estimates by the Ministry of Finance in December (MH), reported the online edition of La Prensa Grafica.
The fiscal deficit is equivalent to 4.2% of the gross domestic product (GDP), said the head of the ministry, Carlos Caceres. "The adjustment has been very large. We hope to reduce it to 4% when the information from December is consolidated, " said Caceres.
Monday, January 2, 2012
Experts agree that 2012 will be a year of slight growth, low inflation and devaluation.
The 30 economists consulted by the weekly publication El Financiero, forecast a GDP growth of around 3.3%, mainly driven by construction and trade sectors through domestic consumption. Interest rates will remain at levels similar to 2011, while the exchange rate could vary between 3 and 6%, reaching between 520 and 540 colones to the dollar at the end of 2012.
Thursday, December 15, 2011
The Central Bank of Costa Rica (BCCR) has announced that the country will close 2011 with a growth rate of 4% and a fiscal deficit equal to 5% of GDP.
Rodrigo Bolanos, president of the BCCR said at a press conference that the growth of 4%, is lower than last July’s projection of 4.5%.
Monday, December 5, 2011
As of September 2011, Salvadoran government debt hit a new record, surpassing that of 1990, when it came to represent 50% of GDP.
From 1990 to 1998 the ratio of public debt to gross domestic product (GDP) decreased to 27%. Since then the ratio began to grow steadily and in 2009 it was once again 50%. Now. the ratio is 51.7%.
Tuesday, November 22, 2011
"Panama is still one of the fastest growing countries in the Americas."
A mission from the International Monetary Fund (IMF), led by Corinne Delechat, visited Panama from 7 to November 18 to conduct the annual Article IV Consultation (1). At the end of the discussion, Ms. Delechat issued the following statement in Panama City:
Tuesday, November 1, 2011
While legally the fiscal deficit may reach as high as 3% during 2011, the government had announced that it would not exceed 2%, which now looks impossible to achieve.
Tax revenues are not meeting the levels predicted at the beginning of the budget year, which seems likely to mean that Panama's fiscal deficit will go above the target of 2% of GDP set for the year
Tuesday, October 25, 2011
The right financial conditions would allow the country to become the Singapore of Latin America.
Modern legislation, a tax system that benefits investors and use of the dollar as circulating currency are just some of the characteristics that Panama has and which could lay the groundwork for even greater market development, which would position the country as a "hub " for securities in Latin America.
Friday, October 21, 2011
The institution will award $8.8 million after approving the Extended Credit Facility agreement .
The agreement referred to was developed by the government and the IMF in line with the macroeconomic program for the period 2007 to 2011.
After having verified compliance with the requirements of the agreement, the IMF has decided to approve it and proceed with disbursements.
Wednesday, October 12, 2011
Between January and July the Gross Domestic Product (GDP) grew by 3.8% compared to the same period in 2010.
According to a report by Aldesa :
In terms of components, final household spending remains strong, growing by 4.8% in the indicated period and keeping in line with the expectations of the Central Bank of Costa Rica (BCCR), which estimates that domestic demand this year will be main driver of economic activity.
Friday, October 7, 2011
In the second quarter GDP rose by 3.7%, exceeding growth recorded in the previous quarter.
The strong economic dynamism experienced by Guatemala seems to be shared by all economic activities from agriculture to services.
While all sectors showed positive changes in the quarter under review, some performed better, such as the transport, communications and storage sector, which showed an increase of 4%.
Tuesday, October 4, 2011
If public debt rises, El Salvador’s risk rating could be reduced, says the agency Fitch Ratings.
The possibility that El Salvador maintains its sovereign debt rating, currently set at BB, depends on the ability of the government not to increase the level of public indebtedness.
So say analysts from the rating agency Fitch Ratings, who added that it is essential that the government maintains control of current growth in expenditure, and preferably tries to reduce it, so as not to further increase the ratio of government debt to gross domestic product (GDP).
Friday, September 9, 2011
They note that the private sector is bearing the brunt of the economy while the government is negligent in implementing development plans that have already been approved by several laws in the Legislature.
A statement by the Salvadoran Association of Industrialists (ASI) reads:
The Salvadoran Association of Industrialists (ASI) has made an assessment on the performance of the manufacturing industry, which details the results of the different productive sectors.
Thursday, September 1, 2011
The amount of tax exemptions is more than double the amount the projected revenue from the tax reform being studied in Congress (2.5% of GDP).
Among the most important exemptions are sales tax (3.68% of GDP) and income tax (1.82% of GDP).
Wednesday, August 24, 2011
In July, the difference between total revenue and expenditure was $87 million. The deficit does not include interest expenses, which amount to $527 million a year, 17.7% more than recorded in July 2010.
A press release by ALDESA reads:
“The July figures for revenues and expenditures by the Central Government are not very encouraging and continue to show the existence of harmful primary deficit.
español
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