Central America faces up to recession conditions
One region that will feel the force of a deep recession in the US is central America. However, recent financial reform could help soften the blow to an extent. Two of the region’s finance ministers tell Euromoney about their hopes and fears.
Participants: Juan Alberto Fuentes, finance minister, Guatemala; Guillermo Handal, finance minister, El Salvador
Nevertheless, recent figures do show some cause for alarm. Economic conditions continue to deteriorate for Guatemala’s commercial partners; family remittances have decreased, as have revenues from tourism. Again as in the other countries in the region, taxation has not generated what we had estimated.
Guatemala is party to the international consensus on the need to implement effective and timely emergency plans. As of January, our government has introduced a Plan for Economic Emergency and Recovery with an integrated approach, supported by a wide range of social and economic sectors in the country.