Central America Economic Forecast

Economic Snapshot for Central America

February 19, 2020

Regional economic growth is expected to decelerate slightly this year, due to slower growth in. Economic activity is seen losing some dynamic in the Dominican Republic,  and Guatemala, and while growth in Puerto Rico is expected to soften markedly. Key downside risks to the outlook include a stronger-than-expected moderation in the U.S., social tensions  and a vulnerability to natural disasters.

Central America Monetary & Financial Sector News

Average inflation in the region eased from 2.4% in December to 2.3% in January according to a preliminary estimate, on deflation in El Salvador and much milder inflation in Guatemala. This offset stronger inflation in the Dominican Republic and Honduras. This year, inflation is expected to rise owing to currency weakening.

Monetary policy was eased in recent weeks in Honduras and Costa Rica to support economic activity, while the Central Bank of the Dominican Republic left its rate unchanged. This year, the regional interest rate is expected to stay low in order to support economic activity.

bet360备用网址In recent weeks, the Dominican peso and the Honduran lempira depreciated against the USD. On the other hand, the currencies of Guatemala and Costa Rica strengthened against the greenback. Persistent twin deficits and political instability in some countries are seen weighing on the regional exchange rate this year.

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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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