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Guatemala’s 2-Part Secret to Economic Growth

Article Summary:

Renewed economic growth in 2013 is in the forecast for Guatemala, with an increase in the construction and financial sectors.

Photo Credit: el Periodico

Original Article Text From el Periodico via Google Translate:

Renewed Construction in 2013

The economic growth for 2013 will be within a range of between 3.5 and 3.9 percent with an increase in activities such as construction and financial intermediation, according to revised projections this week by the Monetary Board (JM).

The report adopted by the JM emphasizes that the behavior of gross domestic product (GDP) next year, the performance of the construction sector will grow 7.7 percent, after reporting moderate rates in 2010 fell by 11.5 per percent.

The effect of the implementation of public infrastructure and the reconstruction of the damage caused by the earthquake of November 7, mainly affecting the west of the country are some of the reasons that explain the growth of the sector.

In the case of financial intermediation is expected a variation of 10.6 percent, with the improvement in demand for credit by the private sector in 2013 will remain in the range of 15.2.

While the activity of agriculture, hunting, forestry and fishing recorded a rate of 2.3 percent, below the 2.6 percent growth achieved this year. According to the central bank, the reduction is due to problems in the production of coffee rust plague and falling international prices due to abundant global supply, mainly from Brazil.

Only the activity of mining and quarrying remains in negative numbers, from a drop of 24.1 percent this year to a contraction of 2.2 percent is expected in 2013 because of increased demand for building materials and extraction of gold and silver .

Revise Policies
The JM also approved amendments in the Monetary, Exchange and Credit for 2013 in areas such as the rule of participation in the currency market, the annual program to check the level of the leader and the duty rate that banks move information system Online reporting of activities they perform.

In the case of exchange participation rule to moderate the volatility of the exchange rate the central bank may intervene in the event that the varies moving average by 0.65 percent instead of 0.60 percent which now stands and active the rule.

According to the document evaluation and review published yesterday by the Bank of Guatemala (Banguat), until December 14 to participate in the exchange market recorded sales of U.S. $ 205.9 million and purchases of U.S. $ 106.2 million, leaving a net equity of U.S. $ 99.7 million.

During the nominal exchange rate depreciated 1.04 percent Q7.810 going from U.S. $ 1 to Q7.892.

Link to Original Article:

From el Periodico

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