- Category: The Nation
- Published on Saturday, July 23 2011 04:24
- Written by Rod Hughes
- Hits: 932
The Central Bank has revised its January predictions about the country's economic growth upwards 0.2% to 4.5%. The Bank said that 2012 growth would be 4.7%.
Bank president Rodrigo Bolaños attributed the rosier figures to "outsourcing services and other significant investments made in free trade zones."
Foreign investment is expected to soar to $2,2 million, 50% more than last year. Much of this investment is due to America Movil (Claro) and Telefonica (Movistar) increasing their presence in order to enter the cell phone market.
Outsourcing of services will grow 13.8% this year and 12.5% next year, the Bank predicts. International Business Machines (IBM) announced recently a $300 investment in this country to establish a new IT service center here, citing the highly-skilled work force and business-friendly policies.
But not all the rosy picture is painted by foreign investments. The consumer market is re-awakening after several years of cautious purchasing, the Bank says.
Commentary: One of the factors optimistic news stories about economic growth in this small country fail to mention is that a great deal depends upon the economic health of its best customer to the north as well as the source of much foreign investment, the United States.
That nation is (at this writing) locked in a political struggle that threatens to cause a massive default on its debts. Since this is an unprecedented danger, no one knows what effect this would have on investors and consumers in that country.