High potential, high barriers ahead for Central American growth

High potential, high barriers ahead for Central American growth

Panama Central America Costa Rica Nicaragua Honduras El Salvador Guatemala Dominican Republic Economy & Policy Features

As the global economy shows new signs of life this year, Central America appears poised to reap the benefits of a disciplined approach adopted by a number of governments in recent years. It needs it, too: Extreme poverty remains a daily reality for millions of people in the region, which has some the highest levels of violence in the world. The optimism comes off a relatively robust 2016, when Central American economies achieved the much-sought cocktail of solid GDP growth rates and low inflation. The region has benefited from low oil prices and, for the second year running, resilient domestic demand has compensated for a less favorable external environment. With sovereign ratings trending u

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