Photo by IMF Central America Economic Outlook. – The International Monetary Fund expects a 3.8% economic growth for the Central American, Panama, and Dominican Republic region (CAPDR).
The 2023 economic numbers represent an economic deceleration compared to last year when The CAPDR economies increased by 5.4%
In Central America, Panama, once again, will lead the way with a 6.0% projected economic increase. Costa Rica is next with 4.4%, followed by Guatemala with 3.4%, and Nicaragua with a 3.0% projected economic growth.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Panama | -17.7 | 15.8 | 10.8 | 6.0 | 4.0 |
| Costa Rica | -4.3 | 7.8 | 4.3 | 4.4 | 3.2 |
| Guatemala | -1.8 | 8.0 | 4.1 | 3.4 | 3.5 |
| Nicaragua | -1.8 | 10.3 | 3.8 | 3.0 | 3.3 |
| Honduras | -9.0 | 12.5 | 4.0 | 2.9 | 3.2 |
| El Salvador | -7.9 | 11.2 | 2.6 | 2.2 | 1.9 |
| **CAPDR | -7.2 | 11.2 | 5.4 | 3.8 | 3.9 |
El Salvador is at the bottom of the Central American projections with a 2.2% estimated economic growth. Second to last is Honduras, with a 2.3% economic outlook.
The IMF’s 2023 economic projection for Central America of 3.8% growth is 0.5% more than the 3.3% expected by the Economic Commission for Latin America & the Caribbean (ECLAC).
The IMF’s economic outlook, along with the World Bank’s and ECLAC’s outlooks, indicate that Panama and Costa Rica will be the top two economies in Central America in 2023.
The three organizations agree that El Salvador will have the lowest economic growth in 2023. The Salvadoran Central Reserve Bank (BCR) foresees a 2.6% economic growth for El Salvador in 2023
According to the International Monetary Fund, the Growth in Central America, Panama, and the Dominican Republic (CAPDR) region will soften further this year and pick up modestly in 2024.
Latin America and the Caribbean Economic Outlook
The economy of Latin America and the Caribbean will grow 2.3% this year, 0.4 percentage points more than expected in July, according to forecasts announced in October by the International Monetary Fund.
According to the IMF, which also forecasts 2.3% growth in 2024 for the Latin America and the Caribbean region, the slowdown is mainly due to tighter monetary policies, low growth in advanced economies, and a drop in the price of raw materials.
