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Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade

Gould, David and Loening, Josef L. (2008): Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade. Published in: Economic Sector Work, Finance and Private Sector Unit, Poverty Reduction and Economic Management Unit, Latin America and the Caribbean Region , Vol. Report, (15 September 2008): pp. 1-15.

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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 of DR-CAFTA in 2004. Nonetheless, while important reforms have been made, at the sectoral level, much remains to be done. The context of a less favorable global environment underlines the need to improve competiveness and enhance productivity. An improved investment climate would contribute to both and help to unleash the full potential of DR-CAFTA.

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