Image by hannazasimova on Freepik
|
|
|
|
Pre-Summer Newsletter 2023 |
|
|
|
Chamber of Commerce Europe - Central America |
|
|
|
Projects, projects, projects… |
|
|
|
As a Chamber of Commerce, Euracen clearly wants to emphasize establishing and building commercial relationships with public bodies and private business communities on the other side of the ocean. The key question is whether YOU are interested in developing activities in Central America? And to what extent YOU are willing to invest the time, people and resources that come with running or participating in projects abroad?. Especially when it is about projects overseas?
Over the past few months, we have been extensively talking to countless entrepreneurs and companies in the most diverse sectors of our economy. What we found out is that a great many entrepreneurs are at least open to discuss such overseas assignments. Whether to go in on their own, or as a member of a consortium. What we have also observed is how impressive the added value is of most companies, not only in terms of product or service but very often in the development, application and implementation of new technologies.
So, what’s missing?
As stated before, in cooperation with the Ambassadors from the countries we represent, it is Euracen’s mission to provide Belgian entrepreneurs, companies and potential investors with in-depth information from reliable sources about PROJECTS in Belize, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua or Panama. And to put those interested, in direct contact with the owners and decision makers of these projects. In other words, the search for projects is on, more than ever, and that’s what we are going to concentrate on for the rest of the rest of the year, in 2024 and beyond.
On May 14, I am off to Panama and El Salvador to sit down with project owners and decision makers. I am convinced that upon my return on May 21, I should be able to share crucial information of strategic importance with some of you! Remember: the "no" you have, the "yes" you can get!
Wish you all a safe and interesting month of May!
|
|
|
|
PRESIDENT |
Erwin De Weerdt |
|
|
|
|
|
How would you rate our newsletter? |
|
|
|
|
|
|
|
|
NEWS FROM CENTRAL AMERICA |
|
|
|
Nоt ‘Ruіnѕ’ but ‘Аrсhаеоlоgісаl Ѕіtеѕ’
Мауа Сulturе-Веlіzе tеllѕ Gоvеrnmеnt, mеdіа аnd рublіс Ву Zоіlа Раlmа Gоnzаlеz
|
|
|
|
Мауа Сulturе-Веlіzе recently іѕѕuеd а ѕtаtеmеnt thаnkіng thоѕе whо соntіnuе tо hеlр аmрlіfу thе vоісеѕ оf thе Мауа соmmunіtу. Мауа Сulturе-Веlіzе аlѕо wаntѕ tо еduсаtе Веlіzеаnѕ аnd vіѕіtоrѕ аbоut thе іmроrtаnсе оf lаnguаgе.
“Тhе wоrd “ruіn” іѕ а dеrоgаtоrу tеrm аѕ іt іmрlіеѕ а ѕеnѕе оf dесау оr fаіlurе. Оthеr hіѕtоrісаl mоnumеntѕ аrоund thе wоrld аrе nоt rеfеrrеd tо аѕ ruіnѕ. Тhеrеfоrе, mоvіng fоrwаrd, wе kіndlу аѕk thаt thе mеdіа, gоvеrnmеnt, tоurіѕm ѕесtоr, іnсludіng tоur guіdеѕ, соrrесt thеіr wоrdіng аnd rеfеr tо Мауа аnсеѕtrаl ѕіtеѕ аѕ еіthеr Аrсhеоlоgісаl Ѕіtеѕ оr Теmрlеѕ,” thе оrgаnіzаtіоn ѕаіd.
Іn аddіtіоn, thе оrgаnіzаtіоn urgеѕ еvеrуоnе tо rеmеmbеr thаt thе Мауа сіvіlіzаtіоn hаѕ gіftеd thе wоrld wіth mаth, wrіttеn lаnguаgе, еngіnееrіng, аnd аn undеrѕtаndіng оf thе соѕmоѕ thаt іѕ bеуоnd оur сurrеnt undеrѕtаndіng. “Ноwеvеr, thе mоѕt ѕіgnіfісаnt gіft thе аnсіеnt Мауа hаѕ gіvеn tо humаnіtу іѕ а unіquе ѕріrіtuаlіtу thаt саllѕ fоr оnеnеѕѕ wіth сrеаtіоn аnd mаnkіnd. Тhіѕ ѕріrіtuаlіtу іѕ ѕtіll vеrу muсh аlіvе аnd thrіvіng аmоng mоdеrn-dау Мауа,” іt аddеd.
“Wе аrе nоt dеаd, vаnіѕhеd, оr іn ruіnѕ. Wе аrе аlіvе аnd thrіvіng,” Мауа Сulturе-Веlіzе furthеr ѕtаtеd. Мауа сulturе-Веlіzе еnсоurаgеѕ аll Веlіzеаnѕ tо рrеѕеrvе аnd рrоtесt оur ѕасrеd ѕіtеѕ аnd hоnоr thе lіvіng Мауа сulturе аnd соmmunіtіеѕ.
https://www.breakingbelizenews...
|
|
|
|
Costa Rican President Talks about 5 Key Issues Facing the Country
|
|
|
|
Costa Rican President Rodrigo Chaves is taking action to combat the increasing violence and organized crime in the country that has left 2022 as the year with the most homicides. Chaves launched a special operation against organized crime that has led to almost 5,000 arrests, and he has proposed strengthening laws to ensure that there is a probability of punishment.
While he ruled out measures such as mass incarceration, he considers legalizing the recreational consumption of marijuana, which would generate tax revenues and discourage illegal trafficking. In addition, he called for clearer signals in the United States in the face of the massive flow of migrants in Central America. Despite criticism for asking Congress to file without ratifying the Escazú Agreement, Chaves affirmed that his country has adequate environmental legislation and will continue to lead the environment for generations.
Here are 5 Key Issues Facing Costa Rica according to the President
1. Gangs
Costa Rican President Rodrigo Chaves said Thursday that there is “a lot to fix” to combat drug gangs and affirmed that he will do “everything possible” to avoid a state of emergency. “We have to change the laws and the Judiciary will also have to take action,”
he said.
2. Legalize Marijuana
One measure he considers opportune is to legalize the recreational consumption of marijuana. Medical consumption is legal in the country. “It makes sense,”
Chaves said, as it would generate tax revenues for the treasury and discourage illegal trafficking. “I am not promoting marijuana consumption. What I am saying (is that) there is a reality: if we legalize it, regularize it, give it the visibility it requires, the regulation it requires, both consumers and non-consumers and the Costa Rican state will be better off,” he said.
3. Help in migration
In terms of migration, Chaves pointed out that Costa Rica is a transit country for migrants to the United States, mainly Venezuelans, and has historically welcomed refugee applicants, such as exiled politicians from Nicaragua. Both situations are now mixed in this “magnet of migrants”, as Chaves calls Costa Rica, and have saturated a system that gives refugees work permits practically automatically. But in the middle were hundreds of “economic refugees,” the president said, who traveled on their way to the United States from Colombia and through the Darien jungle via Panama and who, in the face of restrictive measures from Washington, are stranded in Costa Rica. Chaves called for “clearer signals in the United States” in the face of the massive flow of migrants in Central America so that refugee applications do not pile up: 200,000 when he took office a year ago.
4. Costa Rica Economy
Chaves assured that his country is in an economic “rebirth” by improving unemployment figures (down to 10.6% in the first quarter), inflation (4.2% at twelve months in March) and GDP growth (4.2% in 2022). Costa Rica “was in terrible conditions”, said this former World Bank official and former Finance Minister under former President Carlos Alvarado. “The country is much, much better” now, “the people are happy,” he said, even though there are people who complain about high food prices.
“Obviously we have not reached the level of welfare that this country should and deserves to have. But the travel route is in the right direction,”
he said.
5. Escazú Agreement
Costa Rica’s policies have always included environmental protection, but Chaves received criticism after asking Congress to file without ratifying the Escazú Agreement, a Latin American environmental protection agreement signed in 2018, promoted by his own country and Chile. The president rejected the criticism saying that ratifying that emblematic agreement “makes no sense” because Costa Rica had adequate environmental legislation, so the Escazú Agreement would only add “excessive processes” that would slow down the country’s development. “The Escazú Agreement could have been an improvement in other countries that did not have such a framework,” he said. “Costa Rica has led the environment and we will continue to do so for generations,” he assured.
|
|
|
|
Dominican Republic among countries least affected by regional inflation
|
|
|
|
The Dominican Republic is one of the countries in Central America and the Caribbean least impacted by inflation in the cost of essential food products, according to the latest report from the General Directorate of Consumer Protection of Honduras.
The report was released by the National Institute for the Protection of Consumer Rights (Pro Consumidor) through its executive director, Eddy Alcántara, who made a presentation of the comparative graphs of the products per unit and pound of bulk consumption in each of the countries that make up the Central American Consumer Protection Council (Concadeco).
Alcántara, who presented within the framework of a press conference at the Pro Consumidor headquarters, showed the behavior of all the products subject to the survey carried out by the Central American country, taking as a matrix the information of each nation contained in the database from each institution, such as the price reference per unit and pound of these primary food products.
In the graphs presented, it was possible to see the 21 most influential consumer products in the reference countries. The Dominican Republic is the country that could instantly acquire them per unit or pound with the lowest costs, taking the weight of the United States currency (the dollar) as a reference. ) at the official exchange rate of each of the States.
In the graph, it was also possible to verify that products such as milk, pork, smoked chop, fresh chicken, eggs per carton of 30 units, and potatoes, among others, can be purchased at lower costs than the other countries that are part of this survey.
The conclusion of the study indicates that although inflation has indeed affected all the countries of Central America and the Caribbean, including the Dominican Republic, it would have a lower cost in total consumption than the other reference countries, which coincides with the data shown by the Central Bank of the DR, which indicated that interannual inflation had been reduced to 5.90%.
Alcántara indicated that he has held conversations with the heads of the institutions that have to do with the production and supplies of food in the country, “and they have assured that the supply is guaranteed for the next 18 months in the Dominican Republic.”
The report was released by the National Institute for the Protection of Consumer Rights (Pro Consumidor) through its executive director, Eddy Alcántara, who made a presentation of the comparative graphs of the products per unit and pound of bulk consumption in each of the countries that make up the Central American Consumer Protection Council (Concadeco).
Alcántara, who presented within the framework of a press conference at the Pro Consumidor headquarters, showed the behavior of all the products subject to the survey carried out by the Central American country, taking as a matrix the information of each nation contained in the database from each institution, such as the price reference per unit and pound of these primary food products.
In the graphs presented, it was possible to see the 21 most influential consumer products in the reference countries. The Dominican Republic is the country that could instantly acquire them per unit or pound with the lowest costs, taking the weight of the United States currency (the dollar) as a reference. ) at the official exchange rate of each of the States.
In the graph, it was also possible to verify that products such as milk, pork, smoked chop, fresh chicken, eggs per carton of 30 units, and potatoes, among others, can be purchased at lower costs than the other countries that are part of this survey.
The conclusion of the study indicates that although inflation has indeed affected all the countries of Central America and the Caribbean, including the Dominican Republic, it would have a lower cost in total consumption than the other reference countries, which coincides with the data shown by the Central Bank of the DR, which indicated that interannual inflation had been reduced to 5.90%.
Alcántara indicated that he has held conversations with the heads of the institutions that have to do with the production and supplies of food in the country, “and they have assured that the supply is guaranteed for the next 18 months in the Dominican Republic.”
|
|
|
|
Wоrld Ваnk аррrоvеѕ $100 mіllіоn lоаn fоr wаtеr рrојесtѕ іn Еl Ѕаlvаdоr
Ву Zоіlа Раlmа Gоnzаlеz
|
|
|
|
Last Тhurѕdау, May 4, thе Wоrld Ваnk аррrоvеd а $100 mіllіоn lоаn tо Еl Ѕаlvаdоr tо аѕѕіѕt tо іmрrоvе thе quаlіtу оf іtѕ wаtеr ѕuррlіеѕ аѕ wеll аѕ рrераrе fоr nаturаl dіѕаѕtеrѕ. Тhе lоаn іnсludеѕ а 5-уеаr grасе реrіоd аnd wіll mаturе іn 25 уеаrѕ, Rеutеrѕ rероrt.
|
|
|
|
Guаtеmаlа’ѕ Fuеgо vоlсаnо еruрtѕ, fоrсіng оvеr 1,000 tо еvасuаtе
|
|
|
|
On Тhurѕdау May 4, соmmunіtіеѕ nеаr thе Fuеgо vоlсаnо іn Guаtеmаlа wеrе fоrсеd tо еvасuаtе аѕ іt еruрtеd, ѕреwіng аѕhеѕ оvеr fаrmѕ аnd tоwnѕ. Моrе thаn 1,000 реорlе еvасuаtеd аnd а rоаd wаѕ сlоѕеd duе tо thісk сlоudѕ оf аѕh.
СВЅ rероrtѕ thаt dаtа frоm Guаtеmаlа’ѕ Соnrеd dіѕаѕtеr сеntеr rероrtеd thаt thе аѕh соlumn ејесtеd bу Fuеgо rеасhеd ѕоmе 19,000 fееt аbоvе ѕеа lеvеl. Аuthоrіtіеѕ nоtеd thаt ѕtrоngеr еmіѕѕіоnѕ соuld fоllоw аѕ thе еruрtіоn соntіnuеѕ, аlѕо роѕѕіblу рrоmрtіng mudѕlіdеѕ. Rеѕіdеntѕ wеrе urgеd tо соvеr wаtеr tаnkѕ tо аvоіd соntаmіnаtіоn аnd wеаr mаѕkѕ іn аrеаѕ nеаr thе vоlсаnо.
https://www.breakingbelizenews.com/2023/05/06/international-news-guatemalas-fuego-volcano-erupts-forcing-over-1000-to-evacuate/
|
|
|
|
The International Business Matchmaking 2023
|
|
|
|
The Guatemalan Chamber of Commerce informs that on May 17, 18, and 19 of this year the International Business Matchmaking 2023 will be held in Guatemala City, a space organized with the purpose of commercially connecting exporting companies from more than 20 countries around the world with importing companies from Guatemala, Central America, and the Caribbean.
The International Business Matchmaking will offer the following benefits, among others:
• 1,000 businessmen gathered in one place, from more than 20 invited countries
• 200 international exporting companies
• +800 importers from Guatemala, Central America, and the Caribbean
• 24 business appointments per company
• + than 4,800 business appointments in total
• Conferences on logistics and transportation, business registration and market access
Therefore, we want to offer this space to companies who may be summoned by your institution and gather a delegation to attend the event: Participation with a delegation of exporting companies belonging to any of the 8 sectors that are participating in this International Business Matchmaking, like Processed foods, Footwear and Textiles, Machinery and Tools, Electronics and Household Appliances, Pharmaceutical products, Chemical products, Manufactures, Construction and Finishing Materials.
The participation per exporter has a cost of US$750.00 plus taxes1 . However, for exporting companies summoned by your organization, participation will have a cost of US$ 600.00 plus taxes, offering them a fee of US$150 dollars (approximately) per company as a margin for the company that summons. This with the aim of forming a delegation of at least 10 exporting companies and that is led by a representative of the institution.
It will be an honor for us to be able to count on the participation of your exporting businessmen in this great event that will allow commercial links and business generation to continue strengthening our economies. 1 Taxes + 12% Moreover, we’ll be delighted to have your confirmation of participation in this event before April 15th in order to reserve the space for the business delegation. Therefore, once your participation is confirmed, your organization logo will be included in our promotional content and publicity. Including your logo will represent you as a Strategic Ally for the organization and conformation of the event, making it known that as allies, we are working together to strengthen business with the region. To confirm participation, please send communication to: Delia Sofía Velásquez, Foreign Trade Coordinator, email: dvelasquez@ccg.gt Tel. +502 24172700 Ext. 403. In the same way, we appreciate that in the response communication you can Include the name of the contact person to be able to follow up on your participation in this event. Thanking you in advance for your interest, sincerely Delia Sofia Velasquez Foreign Trade Coordinator Guatemalan Chamber of Commerce.
|
|
|
|
Honduras coffee exports jump nearly 49% in April
|
|
|
|
Honduras' cumulative exports for the 2022-2023 season reached 2.880 million 60-kilo bags last month, slightly above the 2.809 million shipped in the same period of the 2021-2022 season. Honduras plans to export about 5.52 million 60-kilo bags during the 2022-2023 harvest, up from 4.70 million 60-kilo bags shipped from the previous harvest.
|
|
|
|
Honduran coffee exports jumped 48.7% year-on-year in April, helped by higher demand and a delayed shipment from the previous month, an industry executive said on Tuesday. Honduras, Central America's top coffee exporter, exported 868,753 60-kilo bags of coffee beans in April, compared to 584,063 bags shipped a year earlier, according to preliminary data from national coffee institute IHCAFE.
"Part of the coffee that had originally been registered as shipped in March did not leave until April," contributing to the boost, Miguel Pon, president of the Honduran Coffee Exporters Association, told Reuters. Honduras' cumulative exports for the 2022-2023 season reached 2.880 million 60-kilo bags last month, slightly above the 2.809 million shipped in the same period of the 2021-2022 season.
Honduras plans to export about 5.52 million 60-kilo bags during the 2022-2023 harvest, up from 4.70 million 60-kilo bags shipped from the previous harvest. The Central American country, which exports largely arabica coffee, harvests its crop from October to September.
|
|
|
|
The World Bank to support the most pressing needs of Nicaragua's poorest and most vulnerable people through financing and technical assistance
|
|
|
|
Prior to 2018, Nicaragua’s economic growth was supported by market-oriented reforms, sound macroeconomic management anchored in a crawling peg exchange rate regime and prudent fiscal policy, and a growing labor supply.
|
|
|
|
Between 2000 and 2017, growth averaged 3.9 percent, led by domestic demand fueled by remittances and Foreign Direct Investment (FDI). A small, open economy that depends on agriculture and light manufacturing, Nicaragua has not been able to further boost growth and per capita incomes as low human capital, large infrastructure gaps and a weak institutional and business environment undermine its long-term growth.
The sociopolitical crisis of 2018-2019, followed by the COVID-19 pandemic and two major hurricanes in 2020, resulted in a cumulative GDP loss of 8.7 percent, while poverty ratcheted up to 16 percent by end-2020. The economic impact of the pandemic was limited due to mild containment measures and strong remittance inflows. Nonetheless, voluntary shutdowns weighed on domestic demand, while the global crisis reduced external demand in 2020. Large-scale public investment (supported by government deposits), external financial assistance, and strong export demand helped Nicaragua recover from the impacts of these multiple shocks. Real GDP rebounded strongly by 10.3 percent in 2021, recovering to pre-2018 levels. However, welfare impacts from the pandemic lingered as around 10 percent of formal employees in 2019 transitioned to an informal sector by end-2021. Lower employment and wages reduced family incomes of 28 percent of households.
Despite high inflation, global headwinds, and the damage caused by Hurricane Julia, GDP is expected to have grown by 4.0 percent in 2022. This expansion was driven by robust private consumption fueled by remittances, as well as net exports. On the supply side, the economic expansion was broad-based, and driven by services. Remittances expanded sharply during 2022, reaching about 22 percent of GDP due to a spike in emigration. As a result, despite weak employment growth and high inflation, poverty (US$3.65/day PPP) is estimated to have declined to 13.3 percent in 2022 from 14.2 percent in 2021.
In 2022, the average annual inflation in Nicaragua surged to 10.5 percent - the highest among Central American countries and more than double the average inflation rate over the past decade. Inflation was driven by strong domestic consumption and higher import prices caused by pandemic-related supply chain disruptions and Russia's invasion of Ukraine.
Growth is projected to moderate to 3 percent in 2023 amid fiscal consolidation, slowing external demand, and elevated inflation. Slower growth, high food prices and fiscal consolidation are likely to curb reductions in poverty and inequality in the medium term.
The World Bank has supported poverty reduction measures in Nicaragua through the International Development Association (IDA), the World Bank’s fund for the poorest countries. To reach the country’s vulnerable families better, IDA projects leverage local initiatives that stretch limited resources further and deliver sustainable results.
|
|
|
|
Раnаmа tо оbtаіn $150 mіllіоn lоаn frоm Wоrld Ваnk fоr grееn dеvеlорmеnt
Ву Zоіlа Раlmа Gоnzаlеz
|
|
|
|
Оn Тuеѕdау May 2, thе Wоrld Ваnk аnnоunсеd thаt іt hаd аррrоvеd а $150 mіllіоn lоаn tо ѕuрроrt ѕuѕtаіnаblе grоwth аnd сlіmаtе rеѕіlіеnсе іn Раnаmа. Ассоrdіng tо Rеutеrѕ, thе Dеvеlорmеnt Роlісу Lоаn (DРL) rерrеѕеntѕ thе fіrѕt оf 2 ореrаtіоnѕ іn Раnаmа.
|
|
|
|
Economic Snapshot for Central America |
|
|
|
(courtesy FocusEconomics)
Central America and Caribbean Economic Outlook
Regional economic growth will weaken this year; above-target inflation, still-high borrowing costs and waning global momentum will dampen both domestic and foreign dynamics. Key factors to monitor are the evolution of the U.S. labor market—key for remittances and tourism—as well as extreme weather events and political instability.
Central America and Caribbean Inflation
In February, regional inflation plunged to an 11-month low of 6.7% (January: 8.5%). For March, all the countries that have reported data showed softening price pressures. Inflation across the region will gradually moderate this year but remain above central banks’ targets, pressuring consumers’ purchasing power.
|
|
|
|
Economic Outlook
Annual economic growth slowed to 10.5% in Q4 (Q3: 14.8%). The result was driven by a weaker expansion in services activity amid lower growth in tourist arrivals—the latter remained below its pre-pandemic level. Moreover, agricultural output contracted at the same pace as Q3 due to a decline in banana and cattle production. That said, growth in industrial output accelerated to more than double the pace of the previous quarter, thanks to healthy construction activity and electricity generation. Turning to Q1 2023, available data paints a downbeat picture: In January–February, price pressures remained stubbornly elevated and growth in export revenue slowed. However, in January overnight tourist arrivals jumped 34.3% year-on-year, reaching 83.3% of their January 2019 level. This ongoing recovery bodes well for services activity in both the quarter and the year as a whole.
Belize Inflation
Inflation softened to 6.5% in February from 6.6% in January; however, month-on-month inflation jumped to the fastest rate in ten months. This year, tighter monetary policy and a base effect will soften price pressures. The depreciation of the U.S. dollar—the Belizean dollar is pegged to the USD— is an upside risk, as it would increase the cost of imports.
|
|
|
|
Costa Rica Economic Outlook
Growth slowed again in Q4, as restrictive financial conditions, elevated inflation and lower external demand took a toll on output. Turning to Q1 this year, the early signs are upbeat. In January-February, economic activity expanded at a faster rate than in Q4, while growth in both exports and imports accelerated over the same period, pointing to stronger external and domestic demand, respectively. Furthermore, inflation decelerated significantly over the quarter, likely supporting private consumption, while the central bank cut the policy rate by 50 basis points—marking the end of its tightening cycle—reducing the pressure on activity. In other news, the outlook for public spending has been boosted by IMF funding, recent credit rating upgrades and the planned issuance of USD 5 billion in Eurobonds between 2023 and 2025.
Costa Rica Inflation
Inflation decelerated to 4.4% in March (February: 5.6%) on the back of lower price pressures for food and a drop in transportation prices. Softer demand and lower average commodity prices will keep a lid on prices this year. However, Costa Rica’s dependence on food and energy imports remains a key upside risk.
Costa Rica: Economic activity growth rises in February
Economic activity increased 6.1% in annual terms in February, which was above January’s 5.1% increase. The print marked the best reading since March 2022. Looking at the details of the release, the agriculture, forestry and fishing sector swung to contraction in February, while the manufacturing sector gained steam. Moreover, the transport sector grew at a quicker pace. Meanwhile, the trend pointed down, with the annual average growth of economic activity coming in at 4.1%, down from January’s 4.2% reading.
|
|
|
|
Dominican Republic Economic Outlook
The economy started the year on a soft footing but strengthened robustly halfway through the first quarter. Annual economic activity growth accelerated to 1.8% in February. That said, February’s upturn could not bring the average increase of the first two months above that of Q4 2022. In further positive news, underlying momentum was very robust in February: Activity expanded 1.9% in sequential terms, the strongest reading since November 2021 and a marked improvement from January’s 3.2% plunge. Meanwhile, price pressures receded through March—when they cooled to an over two-year low—which should have provided tailwinds for spending at the close of Q1. Additionally, remittances continued to increase in February, although remittances growth waned notably from January. Lastly, the tourism industry continued to fare well: Tourist arrivals were up year on year through February.
Dominican Republic Inflation
In March, inflation receded to an over two-year low of 5.9% (February: 6.4%). Slower increases in transport and food prices drove the moderation. Inflation will continue to ease gradually through Q4 2023 due to tight monetary policy. However, contrary to the BCRD’s forecasts, our panelists see inflation remaining above the upper bound of the BCRD’s 3.0–5.0% target band this year.
|
|
|
|
El Salvador Economic Outlook
Annual growth lost speed again in Q4. Slowdowns in private consumption, exports and investment more than offset a rebound in public spending. Turning to Q1, the early signs are upbeat. Compared to Q4, annual remittances growth accelerated in January–February, while inflation decelerated over Q1 as a whole, boding well for private consumption. Moreover, annual exports growth picked up over the same period. Meanwhile, El Salvador has yet to agree a timetable to negotiate with the IMF on a financing deal, boding poorly for its access to global capital markets. The Fund has said that it is unlikely to greenlight a lending agreement in the absence of key policy changes regarding the use of Bitcoin, the recent costly pension reform and the loosening of reserve requirements for banks.
El Salvador Inflation
Inflation moderated to 6.1% in March (February: 6.8%). Dollarization and slower activity growth will keep a lid on prices this year. That said, volatile oil prices amid OPEC’s latest decision to cut supply pose upside risks. Food price dynamics are a factor to watch.
|
|
|
|
Guatemala Economic Outlook
Annual GDP growth came in at 4.1% in 2022, nearly halving from 2021. In quarterly terms, the growth rate in Q4 was slightly below that of Q3. Both government spending and fixed investment growth accelerated in Q4, but household consumption growth eased. On the external front, export growth moderated, while imports contracted. Looking at Q1, growth is set to continue, albeit at a solid pace. In January–February, the monthly indicator of economic activity expanded at roughly the same pace as in Q4. In Q1 as a whole, remittances were up by around 13%, which should have supported private consumption, while the economic activity confidence index averaged higher than in Q4, boding well for investment.
Guatemala Inflation
Inflation eased to 8.7% in March (February: 9.9%) due to decreases in price pressures for food, housing and electricity. Our panelists expect inflation to ease further as 2023 progresses on a strong base effect. Key factors to watch include extreme weather events, commodity price volatility and the persistence of second-round effects.
Additional comments
Guatemala: Banguat continues with slow and steady approach, hiking by 25 basis points in April. On 26 April, the Monetary Board of the Central Bank of Guatemala (Banguat) raised the key policy rate by 25 basis points to 5.00%. With the latest hike, the cumulative increase in the policy rate amounts to 325 basis points since April 2022.
The decision was explained by headline inflation reaching 8.7% in March, above the Bank’s 3.0–5.0% target range. In addition, 12-month market inflation expectations were also above the target range. As such, the Bank hiked in order to tame price pressures. The Bank’s decision to hike by 25 basis points rather than by a larger increment was likely due to the desire to reduce inflation without significantly affecting economic growth.
Similar to previous releases, the Bank did not provide hints regarding forward guidance, simply affirming its commitment to tame inflation and anchor expectations. The Consensus is for a lower policy rate by the end of the year, although forecasts are likely to be revised up going forward in light of the Bank’s latest move.
The next monetary policy meeting is scheduled for 31 May.
|
|
|
|
Honduras Economic Outlook
Economic growth slowed in quarter-on-quarter and year-on-year terms in Q4 but remained solid. The 3.2% annual growth figure was driven by private and public spending growth, with the former spurred by strong remittances and credit availability. Exports also rose in annual terms in the quarter, although investment tanked amid lower imports of machinery and equipment. In Q1, the growth of the economic activity index more than halved in January compared to the Q4 average. Momentum eased in the mining, manufacturing and construction sectors. That said, remittances expanded in January–February, which should have bolstered household consumption in the quarter despite high inflation. In other news, the government submitted a tax reform bill in March to boost tax revenue and allow for greater government spending. However, the administration’s lack of a parliamentary majority could stymy approval.
Honduras Inflation
Inflation came in at 9.1% in March, falling from 9.8% in February. FocusEconomics panelists see inflation cooling later this year, albeit remaining above the Central Bank’s target range of 3.0–5.0%. Important factors to watch include unanticipated changes in government subsidies and unexpected swings in commodity prices.
|
|
|
|
Nicaragua Economic Outlook
Momentum weakened again in Q4. Sharper contractions in fixed investment and public spending, as well as a slowdown in exports, more than offset an acceleration in private consumption. Turning to Q1 this year, early signs are mixed. Annual growth of economic activity and exports accelerated in January versus the Q4 average. Moreover, remittances growth remained strong in the quarter, and the government hiked the minimum wage by 10.0% in February, likely aiding private consumption. That said, inflation remained elevated over the quarter, pressuring real incomes. Moreover, imports grew less on an annual basis in January, pointing to weakening domestic demand. In other news, the government shuttered the country’s largest business association in March, boding poorly for investment. Furthermore, relations with the West remain tense amid the Ortega regime’s latest crackdown on dissidents.
Nicaragua Inflation
Inflation moderated to 10.4% in March (February: 11.1%), driven by lower price pressures for food, utilities and transport. Price pressures will lessen this year as commodity prices moderate and global supply chain disruptions ease. However, rigidities in local distribution networks and second-round effects remain upside risks.
|
|
|
|
Panama Economic Outlook
Year-on-year GDP growth likely halved in Q4 from Q3 due to a dwindling post-Covid-19 base effect. Growth in tourist arrivals eased to 89.3% annually in Q4 from 108% in Q3, while ebbing global trade and the rerouting of U.S. LNG from Asia to Europe dampened Panama Canal activity—cargo volume growth slowed in Q4. Finally, investment likely fell as interest rates rose during the quarter; growth in construction activity—a sector highly sensitive to interest rates—nearly halved. More positively, household consumption was resilient: Sales of fuel and new cars—two proxies for private spending—rose at a faster pace in Q4 than in Q3. Turning to Q1, further expansions in private consumption should have stalled amid higher average inflation in January–March compared to the previous quarter.
Panama Inflation
Inflation decreased to 1.3% in March (February: 2.0%) due to softer price pressures for food and declining transport prices. In 2023, inflation should remain low by regional standards thanks to dollarization. However, dynamic domestic demand and the removal of fuel subsidies—currently set for 31 May—are upside risks.
Looking ahead, inflation should remain subdued in the next months: Commodities prices are staying constant, supply-chain disruptions are further normalizing, and the government prolonged the fuel subsidy in April for a fourth time, until 31 May. That said, dynamic domestic demand growth and the removal of the fuel subsidy in H2 pose upside risks to inflation. Accordingly, a key factor to watch includes renewed social unrest—if inflation rises further—which could lead the government to maintain support for longer.
|
|
|
|
Central America Embassy Update |
|
|
|
Embassy of Belize
HE Mrs. Gianni Avila, Ambassador
Bd Brand Whitlock 87-93, 6th floor
1200 Brussels
T +32 2 732 62 04
|
|
|
|
Embassy of Costa Rica
As previously announced, pending the appointment of a new Ambassador, Mrs. Sylvia Van Der Laat,has joined the embassy team as Trade Attaché.
Avenue Louise 489 Louizalaan, 9th floor
1050 Brussels
T +32 2 640 55 41
|
|
|
|
Embassy of the Dominican Republic and Mission to the European Union
HEM Ambassador Ivan Ogando
Avenue Louise 231, 2nd floor
1050 Brussels
T +32 2 346 49 35
Mrs. Ellen Martínez de Cooreman, Minister Counselor
Mrs. Carla Bordas Portela , assistant to the Ambassador
FB: http://www.facebook.com/domini... Twitter: @domembassybe
|
|
|
|
Embassy of El Salvador
HEM Ambassador Hiugo Nelson Ortiz Dubon
Rue de la Science 14A Wetenschapsstraat, 2nd floor
1040 Brussels
T +32 2 733 04 85
HE Ambassador Ortiz Dubon is assisted by Mrs. Maria Alejandra Giron, Counsellor
|
|
|
|
Embassy of Guatemala
HEM Ambassador José Lambour Penalonzo
Avenue Winston Churcill 185 Winston Churchilllaan
1180 Brussels
T +32 2 345 90 58
Ambassador Lambour is assisted by
Dr. Gabriel ORELLANA ZABALZA, Consejero Comercial
T +32 2 340 18 03
|
|
|
|
Embassy of Honduras
Mrs. Viviane de Pierrefeu has been named Ambassador of Honduras for Belgium, the Netherlands and Luxemburg, the Baltics and Northern countries and as a Permanent Representative to the EU.
Avenue de Cortenbergh 89 Kortenberglaan, 3rd floor
1000 Brussels
T +32 2 734 00 00
|
|
|
|
Embassy of Nicaragua
HE Ambassador Mrs Zoila Muller Goff
Avenue Wolvendael 55 Wolvendaellaan
1180 Brussels
T +32 2 375 65 00
|
|
|
|
Embassy of Panama
HE Mrs. Yavel Mireya Francis Lanuza, Ambassador
Avenue Louise 475 Louizalaan, 11th floor
1050 Brussels
T +32 2649 07 29
|
|
|
|
NEWS FROM BELGIUM & EUROPE |
|
|
|
Lierse bus manufacturer Van Hool builds 54 electric buses with roof-mounted batteries for the Netherlands
|
|
|
|
Van Hool, the Lier-based manufacturer of buses, coaches and industrial vehicles, has won an order for 54 battery-powered buses. Those buses run on batteries that are on the roof and thus emit nothing. The buses will run long-distance between cities in Groningen and Drenthe starting in late 2024.
Coach and bus builder Van Hool from Lier will build 54 electric buses for the Dutch transport company Qbuzz. Because the buses run on electric batteries, they will not emit anything. "This is a new vehicle and a new concept," explained spokesman Dirk Snauwaert. "So it is a tremendously nice order and at the same time a calling card for our company abroad. Last year we chose to make only zero-emission vehicles. So in addition to hydrogen-powered buses and buses connected to an electric overhead line, we also have battery-powered models.
The 54 buses will be the first battery buses of that size. Because they will run between cities over longer distances and at a higher speed, Qbuzz chose buses 15 meters long with 55 seats. But comfort has also been considered, according to Snauwaert. "We are using seats from coaches with seat belts, footrests and folding tables. In addition, there will be luggage racks, USB charging points and three screens with travel information. Wheelchair users will also be able to board the bus with a manual wheelchair tray."
|
|
|
|
Qbuzz expects to receive the new buses in the last quarter of 2024. "That gives us time to put even more effort into the development of this model," the spokesperson explained. "You have to build prototypes and test models. We hope to start production in the spring of 2024.
|
|
|
|
MoU between Union Wallonne des Entreprises and the Walloon Chambers of Commerce
|
|
|
|
With the signing of a memorandum of understanding between the Walloon employers’ association, Union Wallonne des Entreprises (UWE), and the 5 Walloon Chambers of Commerce, a first and important step was taken towards a full-fledged alliance. This will soon give Wallonia what Flanders already has with Voka, Brussels with Beci, and Ostbelgien with IHK-AVED: a stronger representation of the interests of all businesses and a better response to the needs of businesses, while maintaining and strengthening the dynamism of the chambers' local operation and UWE's expertise.
|
|
|
|
Flanders’ ports smoothly navigate economic waters
|
|
|
|
It’s fair to say that 2022 was a challenging year, with geopolitical turmoil and economic recession on a global scale. Yet, amidst this uncertainty, Flanders’ 3 major ports not only weathered the storm, but also continued to up the ante in connecting Flanders’ international business environment to the world. This is reflected in the annual figures that have been announced.
North Sea Port Ghent books record year
For North Sea Port Ghent, 2022 turned out to be the best year since the merger in 2018, with 73.6 million tons of cargo transshipment by sea (+7%) and 64.5 million tons by inland navigation (+7%). In particular, dry bulk transshipment continued to increase strongly (+10%). To explain this growth, CEO Daan Schalck calls attention to additional stock building and an increased supply of raw materials, like oilseeds, crude iron, fertilizers and coal, among others. In 2022, the US was the most important trading partner (+27%). For 2023, the future looks nothing but bright at North Sea Port, which is still working hard to achieve its long-term goal of climate neutrality by 2050. Together with ArcelorMittal, the port is developing ‘North-C Circular’, a 150-hectare business park to accommodate companies that focus on circular activities. Preparations are at full speed to start construction in the course of 2024.
Growth for Port of Ostend
With 4,658 vessel calls per year, the Port of Ostend remains in a strong position despite the turbulent geopolitical times. The slight decline in bulk tonnages of supplied sand and gravel was compensated by a 1% increase in other maritime traffic. According to President Charlotte Verkeyn, this growth is due to the arrival of numerous new companies in the port. As a result, employment figures are also increasing year after year. So close to the sea, the Port of Ostend is part of Flanders’ attractive tech scene where R&D-driven companies like to settle down, giving a huge boost to employment in the region. One of the latest additions to the area is French engineering company ECA GROUP, which is developing a 5,000 m² drone factory at the Ostend site.
Port of Antwerp-Bruges keeps a steady course
For the Port of Antwerp-Bruges, 2022 saw many shifts within the various cargo flows, especially the container segment. Compared to 2021, container throughput fell 8.6% in tons and 5.2% in TEUs. This also impacted total cargo throughput, which reached 286.9 million tons (-0.7%). 2022 was also marked by a flood of new investments and projects, which confirms just how attractive the unified port is, as well as the added value of how the two port platforms complement each other, according to CEO Jacques Vandermeiren. Due to its strategic location in Flanders and being part of Europe’s largest chemical cluster, the Port of Antwerp-Bruges is well on its way to turning itself into a major European hydrogen hub. This is illustrated once again by the arrival of US company Plug, one of the world’s largest producers of green hydrogen.
|
|
|
|
developed with the support of
|
|
|
|
|