US Crisis Affects
Central America
TEGUCIGALPA - The
US financial crisis has
increased unemployment,
reduced money
remittances from abroad
and affected Central
American exports to that
country, despite the
Free Trade Agreement,
according to the
Secretariat of Central
American Economic
Integration.
The report "Impact of
the US Financial Crisis
on Central America,"
drawn up by experts of
that institution and
submitted to the
presidents of the region
at an extraordinary
summit held in this
capital on Saturday,
says the US crisis has
caused direct foreign
investment in the region
to shrink.
Our major trading
partner, the United
States, has reported a
short- and long-term
economic slowdown, and
despite that, the
region's economy is
expected to grow 5.5
percent in 2008,
according to the report,
which was presented by
Honduran Trade Minister
Fredy Cerrato and was
quoted by the radio
station RHN.
Another problem
affecting Central
America is inflation,
which increased to 11.6
percent in May, due to
external factors such as
high oil and food
prices, as a result of a
rise in agricultural
inputs and speculation
in the cereal futures.
Presidents Manuel Zelaya
(Honduras), Alvaro Colom
(Guatemala), Antonio
Saca (El Salvador),
Oscar Arias (Costa Rica)
and Daniel Ortega
(Nicaragua) were warned
about a possible
reduction of family
remittances this year,
as opposed to last
year's increasing trend.
The report urged the
Central American
governments to create
jobs, boost agricultural
production, mainly basic
cereals, increase
exports and invest in
infrastructure. |
