Download Guatemala,19 de octubre de 2015

Central America improves trade deficit, sees continued trade
slowdown in Q1 2016
Central America, July 12, 2016. Figures from SIECA’s Central American Trade Monitor for Q1
2016 show the trade deficit lowered to a five-year low of -3.8% of GDP.
Central American countries also extended a downward trend in both exports and imports in the
period. Exports fell at a rate of 5.2% year on year in the first quarter, due mainly to a 6.8% drop
on exports to third countries. Meanwhile, exports to the regional market contracted 1.3% y/y,
pointing to the importance of further strengthening trade within the regional market. Imports
fell 6.9% y/y.
The Central American Trade Monitor is a quarterly report related to the region’ s international
trade patterns and statistics. It’s produced by the Economic Intelligence Unit of SIECA
(Secretariat for Central American Economic Integration). It excludes information from maquila
and inward processing regimes.
Below, you’ll find details from this update to the Monitor:

The volume of Central America’s total exports in Q1 2016 was US$6.98 billion, 5.2% less
than in the same period in 2015.

Exports to third partners accounted for 68.5% of total exports and experienced a drop of
6.8% y/y. In detail, Costa Rica was the only economy in the region that saw 5.5% of positive
growth, while the rest of countries experienced a drop between 4.1 and 22.0%.

The main export products in Central America’s offer to third parties, by volume, include:
Coffee (14.9%), Bananas and plantains (11.8%); Instruments and appliances used in medical,
surgical, dental or veterinary science (9.6%), Sugar (8.3%), and Dates, figs, pineapples,
avocados, guavas, mangoes and mangosteens (4.6%). Palm oil and medical instruments are
the product categories that experienced more growth in the period.

The United States is the leading export destination for Central America’s products (48.9% of
extra regional exports). It’s followed by the European Union (22.7%), Mexico (3.4%),
Dominican Republic (2.7%), and Canada (2.5%). Exports to the US and the EU dropped 4.0%
and 2.2%, respectively, but those to Japan (+26.4%) and Taiwan (+29.6%) grew the most.

Exports within countries in Central America account for 31.5% of total exports.

Intraregional exports fell 1.3%. In detail, Costa Rica and Honduras saw exports to the region
grow 1.2% and 0.3% respectively. Guatemala, El Salvador and Nicaragua’s fell between 1.5
and 3.4%, while Panama’s dropped 14.5%.

The main intraregional export products include: Medicines (5.1% of the total); plastic
packaging materials (3.7%), Bread, pastry, cakes, confectionery and other baker's wares
(3.3%), Water, including mineral and aerated waters (3.0%), and prepared foods (3.0%).

Guatemala leads the countries’ participation in intraregional exports with 33.7% of the total.
It’s followed by Costa Rica and El Salvador (24.0% each), Honduras (10.7%), Nicaragua (6.7%)
and Panama (0.9%).

The volume of Central America’s total imports in Q1 2016 was US$15.32 billion, 6.9% less
than in the same period in 2015.

Imports from third partners accounted for 85.3% of the total; imports from within the
Central American market accounted for the remaining 14.7%.

Main products imported from outside Central America include: Petroleum oils or of oils
obtained from bituminous minerals (11.1%), Motor cars and other motor vehicles principally
designed for the transport of persons (5.2%), Telephones for cellular networks or other
wireless networks (3.3%), Medicines (3.2%), and vehicles for the transport of goods (2.1%).

The United States is the main source of extra regional imports (39.8% of the total), followed
by China (13.4%), Mexico (9.8%), the European Union (9.2%) and Japan (2.6%). Imports from
Brazil and India experienced the most growth in the period.

Central America’s trade deficit reached a five-year low of -3.8% of GDP. In Q1 2012, the
trade deficit was -4.6% of GDP. In detail, the trade deficit lowered in all countries excepting
Nicaragua.
About the Secretariat for Central American Economic Integration – SIECA
The Secretariat for Central American Economic Integration – SIECA – is the body in charge of
promoting efforts to gradually achieve the economic union of Guatemala, El Salvador, Honduras,
Nicaragua, Costa Rica, and Panama. SIECA’s goal is to expand the region’s opportunities for
development and strengthening its links with the global economy.
It also produced studies, policy briefs, and reports about trade, investment, economic
development, regional integration, and other topics related to Central America’s economic
integration.
Contact:
Luis Eduardo Barrueto (Communications Officer, SIECA)
P. (502) 2368-2151 Ext. 6808 | C. (502) 5779-6087
[email protected]