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The economy of Central America is the eleventh-largest economy in Latin America, behind Brazil, Mexico, Argentina and Colombia. According to the World Bank, the nominal GDP of Central America reached 204 billion US dollar in 2010, as recovery from the crisis of 2009, where gross domestic product (GDP) suffered a decline to 3.8%. [1] The major economic sectors are agriculture and tourism, although the industrial sector has shown strong growth, mainly in Panama.
The U.S. is the main socio-commercial partner of all Central American countries. Other important socio-commercial countries in Central America are the European Union, Japan, Dominican Republic and Mexico. [2] Currently, the Central American bloc is based on a bilateral free trade agreement (FTA) with the United States known as CAFTA-DR, and another in negotiations with Peru. The Panama Canal is the connection of Central America with the rest of the world, and the main means of communication for trade with Central America, South America, United States, Europe and Asia.
The economic development of Central America is the middle level, although competitiveness is remarkable:
Each country has its own national currency, with the exception of El Salvador, where the US dollar was taken as currency in the country as of January 1, 2001, [12] replacing the Salvadoran colón. El Salvador will also make Bitcoin an official currency beginning on September 7, 2021. [13] Belize is a country where the dollar circulates, but of Belizean type. In the case of Panama, two types of currency are in use, the Panamanian balboa and the US dollar. The Balboa is pegged to the US dollar 1:1, is issued only in coin form, and is subdivided into 100 centésimos. For all practical purposes the currency of Panama is the US dollar.
Countries | Official Currency |
---|---|
Belize | Belizean dollar |
Costa Rica | Colón |
El Salvador | US Dollar and Bitcoin |
Guatemala | Quetzal |
Honduras | Lempira |
Nicaragua | Córdoba |
Panama | Balboa and US dollar |
Guatemala has the highest gross domestic product in Central America, followed by Panama, Costa Rica and El Salvador. The GDP data are based on data from the World Bank corresponding to 2012. [14] The rates of economic growth come from the CIA World Factbook. [15]
Countries | GDP PPP | GDP PPP per capita | nominal GDP | nominal GDP per capita | Economic growth (%) |
---|---|---|---|---|---|
Belize | $2,754,000,000 | $8,412 | $1,520,000,000 | $4,481 | +3.00 |
Costa Rica | $58,599,000,000 | $12,558 | $44,884,000,000 | $9,500 | +5.10 |
El Salvador | $45,980,000,000 | $7,734 | $23,985,000,000 | $4,108 | +1.90 |
Guatemala | $78,419,000,000 | $5,191 | $50,296,000,000 | $3,330 | +3.30 |
Honduras | $37,670,000,000 | $4,593 | $18,180,000,000 | $2,185 | +3.30 |
Nicaragua | $19,894,000,000 | $3,336 | $7,828,000,000 | $1,291 | +4.10 |
Panama | $67,804,000,000 | $17,830 | $36,252,500,000 | $9,534 | +10.00 |
Regarding exports and imports, the balance is negative in the region, each country consumes more than it produces. The main products that the region exports are agricultural type (cocoa, coffee, rice, flowers, etc.), the largest purchaser is the United States. While on the other hand, the region imports nontraditional products (cars, appliances, electronics, etc.) and the main seller is United States.
Countries | Imports of goods and services (2010) | Exports of goods and services (2010) | Balance |
---|---|---|---|
Panama [16] | $25,232,000,000 | $18,106,000,000 | +$835,000,000 |
Costa Rica [17] | $14,010,000,000 | $12,120,000,000 | +$120,000,000 |
El Salvador [18] | $8,234,000,000 | $9,333,000,000 | +$135,000,000 |
Guatemala [19] | $8,135,000,000 | $8,957,000,000 | +$130,000,000 |
Honduras [20] | $7,235,000,000 | $7,002,000,000 | +$96,300,000 |
Nicaragua [21] | $4,723,000,000 | $3,366,000,000 | +$100,500,000 |
According to the World Bank, Panama, Costa Rica and Guatemala are the countries that receive more foreign direct investment in Central America, and exceeded one billion US dollars. The next table shows the values in dollars, and investment growth between 2010 and 2014: [22]
Countries | Foreign investment (2010) | Foreign investment (2011) | Foreign investment (2012) | Foreign investment (2013) | Foreign investment (2014) |
---|---|---|---|---|---|
Belize | $96,449,877 | $95,348,525 | $194,201,409 | $92,247,731 | $141,097,030 |
Costa Rica | $1,850,664,231 | $2,141,615,128 | $2,692,160,896 | $3,284,494,667 | $2,345,257,533 |
El Salvador | $113,160,684 | $122,500,004 | $447,709,564 | $242,345,997 | $474,801,761 |
Guatemala | $845,598,200 | $1,139,659,133 | $1,263,638,429 | $1,353,141,908 | $1,204,670,350 |
Honduras | $484,836,873 | $1,042,571,021 | $1,067,550,208 | $1,069,029,263 | — |
Nicaragua | $489,900,000 | $936,300,000 | $767,658,534 | $815,500,000 | $840,000,000 |
Panama | $2,549,100,000 | $4,395,600,000 | $3,297,100,000 | $5,053,200,000 | $5,213,800,000 |
Banking is one of the main economic activities in Central America, which takes place mainly in Panama, El Salvador and Costa Rica. Since 2010, Guatemala, Honduras and Nicaragua have developed strong growth of the banking. Regarding financial centers, El Salvador and Panama are the only Central American countries that have a World Trade Center.
The economist magazine American Economy published its ranking "The 250 best banks in Latin America," presented the list of the 42 Central American banks included.
Within the Latin American general ranking, the first Central American Bank is the number 39 in the list, and it is the HSBC Panama in Panama City.
Within the first 100 places in the general ranking of Amperica Economy, 7 Central banks appears: HSBC Panama ranked 39th, General of Panama at 42, National Panama (57), National of Costa Rica (70), Bladex of Panama (75), Agricultural Bank of El Salvador (85) and Costa Rica Bank of Costa Rica (92). [23]
Costa Rica, officially the Republic of Costa Rica, is a country in the Central American region of North America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as maritime border with Ecuador to the south of Cocos Island. It has a population of around five million in a land area of nearly 51,180 km2 (19,760 sq mi). An estimated 352,381 people live in the capital and largest city, San José, with around two million people in the surrounding metropolitan area.
This is a demographic article about Costa Rica's population, including population density, ethnicity, education level, health of the populace, economic status, religious affiliations, and other aspects of the population.
The economy of Costa Rica has been very stable for some years now, with continuing growth in the GDP and moderate inflation, though with a high unemployment rate: 11.49% in 2019. Costa Rica's economy emerged from recession in 1997 and has shown strong aggregate growth since then. The estimated GDP for 2023 is US$90 billion, up significantly from the US$52.6 billion in 2015 while the estimated 2024 per capita is US$28,558.
Central America is a subregion of North America. Its political boundaries are defined as bordering Mexico to the north, Colombia to the southeast, the Caribbean to the east, and the Pacific Ocean to the southwest. Central America is usually defined as consisting of seven countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Within Central America is the Mesoamerican biodiversity hotspot, which extends from southern Mexico to southeastern Panama. Due to the presence of several active geologic faults and the Central America Volcanic Arc, there is a high amount of seismic activity in the region, such as volcanic eruptions and earthquakes, which has resulted in death, injury, and property damage.
According to the 2022 revision of the World Population Prospects, Nicaragua has a population of 6,850,540..According to a 2014 research published in the journal Genetics and Molecular Biology, European ancestry predominates in 69% of Nicaraguans, followed by African ancestry in 20%, and lastly indigenous ancestry in 11%. A Japanese research of "Genomic Components in America's demography" demonstrated that, on average, the ancestry of Nicaraguans is 58–62% European, 28% Native American, and 14% African, with a very small Near Eastern contribution. Non-genetic data from the CIA World Factbook establish that from Nicaragua's 2016 population of 5,966,798, around 69% are mestizo, 17% white, 5% Native American, and 9% black and other races. This fluctuates with changes in migration patterns. The population is 58% urban as of 2013.
Central America is commonly said to include Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama. This definition matches modern political borders. Central America begins geographically in Mexico, at the Isthmus of Tehuantepec, Mexico's narrowest point, and the former country of Yucatán (1841–1848) was part of Central America. At the other end, before its independence in 1903 Panama was part of South America, as it was a Department of Colombia. At times Belize, a British colony until 1981, where English instead of Spanish is spoken, and where the population is primarily of African origin, has been considered not part of (Spanish-speaking) Central America.
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The following lists events that happened during 2022 in Central America.