Central America’s economic growth will continue to outpace Latin America’s mainly as a result of its stable consumption and investment levels.
While Costa Rica and Panama continue to be the top performers in terms of overall growth, Guatemala’s importance as a potential investment destination is expected to continue to increase as its middle class’ purchasing power strengthens despite the country’s political uncertainties.
While Honduras has shown growth acceleration, crime and corruption problems will continue to limit the country’s upside potential.
Overall, Central America is positioned to continue growing at high rates, but over the medium-term FSG expects growth to decelerate, mainly on the back of the projected oil price stabilization.
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- Which Central American markets are likely to outperform
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