Economy and Business Info
How does the process of economic growth in Honduras in 2010-2011
The Honduran economy will grow between 2.2 and 3.2 percent this year after recovering from the 1.9 percent fall suffered in 2009 by the international crisis and domestic political conflict, predicted yesterday the Central Bank of Honduras (BCH).
Members of the Board of Central Bank of Honduras
Members of the Board of Central Bank of Honduras
The information on these and other economic parameters were announced at a press conference on the “Monetary Program for 2010-2011″ which was adopted yesterday by the authorities BCH through its directory.
The president of BCH, Maria Elena Montage, reported that “an estimated annual inflation rate in December 2010 to 6 per cent, with a tolerance range of plus or minus one percentage point (pp) and 5.5 percent, with the same tolerance range for 2011. “
According to the monetary program is expected to reduce the deficit to 4.4 percent of GDP in 2010 and 4.1 percent in 2011.
The BCH also noted that “the lack of a budget to guide the management of public administration for a large part of 2009 allowed a relaxation in fiscal policy, which, added to the political crisis raised in June of that year, was in a significant increase in central government deficit which stood at 6.2 percent of GDP at year-end.”
That growth will be “driven mainly by the recovery in private consumption and external demand,” said the president of BCH, Maria Elena Montage, introducing the Monetary Programmed 2010-2011.
He recalled that in 2009 the Gross Domestic Product (GDP) “contracted by 1.9 percent, deepening the slowdown shown in 2008,” and anticipated the growth forecast for 2011 is between 3.6 and 4.6 percent.
“Based on global economic recovery in 2010, and by the return to political stability in the country, is expected to return to the Honduran economy growth path to achieve a GDP growth within a range between 2.2 and 3.2 percent, “says the document.
The report attributed the slowdown in activity to the international crisis and the effects of the internal political crisis, “which resulted in lower financial flows and a significant reduction in external and domestic demand.”