June 4, 2020

The Honduran economy contracts 1.3% in the first quarter due to the pandemic



The Honduran economy contracted 1.3% in the first quarter of 2020, for the first time since the 2009 economic crisis, due to the effects of the SARS-CoV-2 coronavirus pandemic, the country’s Central Bank reported this Saturday. Central American (BCH).

The Monthly Economic Activity Index (IMAE) registered “a cumulative contraction of 1.3%” due to the containment measures approved by the Government to prevent the spread of the pathogen causing the COVID-19 disease since last March, said the transmitter.

The preventive measures affected “the provision of services, personal and professional service centers, mandatory closure of companies and shopping centers, among others,” he added.

The quarterly decrease had an impact of a 10.9% year-on-year reduction in national production due to the lower demand for intermediate and exportable products, as well as for final consumer goods, the monetary institution emphasized.

However, the agri-food sector, its distribution chain and some services reported “less negative impact” due to prevention measures, he said.

The activities that registered the greatest contraction in the first three months were hotels and restaurants (11.5%); private construction (8.8%); manufacturing industry (6.4%); transportation and storage (4.4%), and financial intermediation, insurance and pension funds (4.8%).

Other activities with less growth were telecommunications (4.7%); trade (3.6%), while the agriculture, livestock, forestry and fishing sector registered an increase of 0.2%.

The IMAE is an indicator that measures the main sectors of a country’s economic activity and is used for investment decision making.

The Gross Domestic Product (GDP) of Honduras will fall this year between 2.9% and 3.9% due to the impact of the coronavirus, while a recovery in the economy of between 4% and 4.5% is expected by 2021, he said. last day 7 the Central Bank.

GDP will decrease, according to an update of the 2020-2021 Monetary Program, due to the contraction in consumption and private investment, as well as in exports of goods and services.

The decline is also due to “decline” in sectors such as manufacturing, commerce, hotels and restaurants, agriculture, transportation and storage, and construction.

Honduras has registered for the moment 3,347 COVID-19 infections and 167 deaths.

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