Central America: Economic Progress and Reforms

Departmental Papers, November 24, 2008

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Central America: Economic Progress and Reforms

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Bibliographic details

• Authors: Dominique Desruelle, Alfred Schipke
• Published: November 24, 2008
• Series: Departmental Papers
• DOI: https://doi.org/10.5089/9781589067653.087

Summary

• Central America has made substantial progress in recent years in moving economic reforms forward and deepening regional and global integration.
• As result of these efforts, the region has experienced higher growth, increased capital inflows, and some reductions in poverty rates.
• But Central America remains vulnerable to adverse shocks and continues to face widespread poverty.
• While today Central America is in better condition to face such shocks, the current turmoil in global financial markets and U.S. growth slowdown could put at risk the hard-won gains of recent years.
• Faced with these challenges, the authorities are monitoring developments closely and are taking precautionary measures, but they also need to continue implementing productivity-enhancing reforms and measures aimed at reducing income inequality and poverty.

Key findings and policy implications

• Economic reforms and deeper regional and global integration contributed to higher growth, increased capital inflows, and some reductions in poverty rates.
• Vulnerabilities remain: exposure to adverse shocks, widespread poverty, and risk from external developments such as turmoil in global financial markets and U.S. growth slowdown.
• Policy priorities identified:
  • Continue implementing productivity-enhancing reforms.
  • Implement measures aimed at reducing income inequality and poverty.
  • Maintain close monitoring of external developments and take precautionary measures as needed.

Subjects and keywords (as listed)

• Subjects: Customs unions, Financial institutions, Financial markets, Fiscal policy, Income, International trade, National accounts, Securities, Stock markets
• Keywords: Baltics, Caribbean, Central America, customs union, Customs unions, DP, DPPP, Europe, financial market, Gini coefficient, Global, gross domestic product, Income, net importer, Securities, Stock markets, tax burden, value-added tax

Content in this bundle

• Central America: Economic Progress and Reforms
  • Central America: Economic Progress and Reforms (Markdown version)
  • Central America: Economic Progress and Reforms (PDF)
• América Central: Progreso económico y reformas; Departamento del Hemisferio Occidental; 2008.
  • América Central: Progreso económico y reformas; Departamento del Hemisferio Occidental; 2008. (Markdown version)
  • América Central: Progreso económico y reformas; Departamento del Hemisferio Occidental; 2008. (PDF)