Publication: Local Gains from Global Opportunities : Improving Central America's Investment Climate
Date
2008-09
ISSN
Published
2008-09
Author(s)
World Bank
Abstract
Central America's economic
performance in recent years has benefited from improved
macroeconomic management, a favorable external environment,
as well as rising investor confidence since the region has
pursued greater access to global markets, particularly with
the signing Dominican Republic, Central American Free Trade
Agreement (DR-CAFTA) in 2004. Nonetheless, while important
reforms have been made, much remains to be done, and the
context of a less favorable global environment underlines
the urgent need to improve competitiveness and enhance
productivity. An improving investment climate will
contribute to both. This chapter discusses the broad
economic factors that shape the investment climate in
Central America. Section one describes the overall strategic
context, highlighted by the opportunities and challenges
emerging from the new trade deal. Section two discusses the
region's macroeconomic environment, economic growth,
sectoral changes, the business cycles with the US, and
overall stability. Section three covers trade, financial and
remittances flows, which are particularly important to the
region. Section four summarizes and takes a look ahead.
Citation
“World Bank. 2008. Local Gains from Global Opportunities : Improving Central America's Investment Climate. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/c5299120-2bef-5f60-87ba-8398ef7bf6a5 License: CC BY 3.0 IGO.”