CEPAL Says Central American Economy to Grow 3.3 percent in 2004

The Central American overall economy will jump 3.3 percent this year according to estimates reckoned by the Economic Commission for Latin America and the Caribbean (CEPAL is the acronym in Spanish).

The economic going of Central American nations, though, will hinge heavily on the good health of the U.S. economy.

Around 60 percent of Central America’s exports are headed for the U.S. market and that nation provides half the number of tourists that visit the region in a single year.

In that sense, CEPAL officials believe there are great expectations placed on a potential Free Trade Agreement between Central America and the United States.

The CEPAL report notes the Costa Rican economy will fare better than the rest, even though growth will slide from 5.6 percent last year to 4.4 percent by the end of 2004.

Panama will soar 4 percent, while the Nicaraguan, Honduran, Guatemalan and Salvadoran economies will accrue 3.7, 3.5, 2.6 and 2.2 percent, respectively.

The regional economy has been bouncing back since 2003 after going through two years of scarce or no growth at all.

The CEPAL study points to significant increments in the prices of most farming commodities. However, higher oil prices will affect exchange terms in the region. Therefore, organizations like the United Nations believe chances for bigger income money are pretty slim.