May 9, 2017 |
As the global economy shows new signs of life this year, Central America appears poised to reap the benefits of a disciplined approach adopted by a number of governments in recent years. It needs it, too: Extreme poverty remains a daily reality for millions of people in the region, which has some the highest levels of violence in the world.
The optimism comes off a relatively robust 2016, when Central American economies achieved the much-sought cocktail of solid GDP growth rates and low inflation. The region has benefited from low oil prices and, for the second year running, resilient domestic demand has compensated for a less favorable external environment. With sovereign ratings trending
Compared with much of Latin America, the Central American economies show healthy growth. Can they overcome political and social issues – and the Trump administration – to reach their potential?