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Latin American Economy & Business - March 2017 (ISSN 1741-7430)

Central America: Looking good, but what lies beneath?

From the broad macro-economic perspective, the sub-region of Central America and the Dominican Republic (referred to as CADR) is doing rather well. A new report from the Inter-American Development Bank (IDB) forecasts overall regional GDP growth of 3.9% this year, along with low inflation and a healthy banking system. That seems to be a lot better than what either Mexico to the north, or much of South America to the south, will be able to muster this year, in GDP terms. But the report warns that on closer examination, not enough is being done to get the regional economies in shape for tougher times.

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