{
  "title": "Potential Output Growth Estimates for Central America and the Dominican Republic",
  "publication": "IMF Working Papers, December 23, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/potential-output-growth-estimates-for-central-america-and-the-dominican-republic-44495",
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  "summary": "This paper presents estimates of potential output for all Central American economies. Our findings are that potential output growth has declined in recent years in most economies of Central America. Lower capital accumulation and TFP growth are accounting for most of this decline.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- The paper presents estimates of potential output for all Central American economies.\n- Potential output growth has declined in recent years in most economies of Central America.\n- Lower capital accumulation and TFP growth are accounting for most of this decline.\n- Apart from Costa Rica, there are no indications of significant economic slack in 2015 in Central America.\n- Looking forward, potential growth in most Central American economies is expected to continue at an average of 4 percent in the medium-term due to structural constraints to capital and employment growth, and low TFP growth.\n- Increasing potential growth should be a policy priority."
    },
    {
      "heading": "Drivers of the decline in potential output",
      "content": "- Lower capital accumulation.\n- Lower total factor productivity (TFP) growth.\n- Structural constraints to capital and employment growth.\n- Low TFP growth limiting medium-term potential."
    },
    {
      "heading": "Economic slack and cyclical conditions",
      "content": "- No indications of significant economic slack in 2015 in Central America, with the sole exception of Costa Rica."
    },
    {
      "heading": "Medium-term projections and scenarios",
      "content": "- Potential growth in most Central American economies is expected to continue at an average of 4 percent in the medium-term."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Structural reforms must be directed at:\n  - Improving business conditions.\n  - Improving product markets.\n  - Improving labor markets.\n  - Enhancing the capacity for innovation.\n\n---\n\n Content in this bundle\n\n- Potential Output Growth Estimates for Central America and the Dominican Republic\n  - Potential Output Growth Estimates for Central America and the Dominican Republic (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Potential Output Growth Estimates for Central America and the Dominican Republic (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/potential-output-growth-estimates-for-central-america-and-the-dominican-republic-44495"
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    "Authors: Roberto Garcia-Saltos, Fan Zhang, Iulia Ruxandra Teodoru",
    "Published: December 23, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475563153.001",
    "The paper presents estimates of potential output for all Central American economies.",
    "Potential output growth has declined in recent years in most economies of Central America.",
    "Lower capital accumulation and TFP growth are accounting for most of this decline.",
    "Apart from Costa Rica, there are no indications of significant economic slack in 2015 in Central America.",
    "Looking forward, potential growth in most Central American economies is expected to continue at an average of 4 percent in the medium-term due to structural constraints to capital and employment growth, and low TFP growth.",
    "Increasing potential growth should be a policy priority.",
    "Lower capital accumulation.",
    "Lower total factor productivity (TFP) growth.",
    "Structural constraints to capital and employment growth.",
    "Low TFP growth limiting medium-term potential.",
    "No indications of significant economic slack in 2015 in Central America, with the sole exception of Costa Rica.",
    "Potential growth in most Central American economies is expected to continue at an average of 4 percent in the medium-term.",
    "Structural reforms must be directed at:",
    "**Potential Output Growth Estimates for Central America and the Dominican Republic**"
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