United States

Ecuador's Productivity & Industry Minister meets with prominent American companies

In a meeting with twelve companies (members of the U.S. Chamber of Commerce), the Productivity and Industries Minister Santiago Leon presented his platform to increase productivity in Ecuador (Ecuador Inmediato, 17 November 2016). Leon stated Ecuador has generated a favorable environment to create opportunities, such as establishing political and judicial stability, creating jobs, improving human talent, and social benefits. Leon revealed the plan is to continue to develop a public-private alliance, this due to the concern and uncertainty from foreign investors. U.S. Ambassador to Ecuador Todd Chapman was present at the meeting, described it as positive, and hopes that investment opportunities in Ecuador can crystalize in 2017 (El Telegrafo). 

Mexican government prepares post-US election economic plan

Officials in Mexico are reportedly planning an economic strategy following the aftermath of the United States presidential election on 8 November 2016. As mentioned by El Diario de Juarez on 3 November 2016, Central Bank (Banxico) Governor Agustín Carstens claimed a contingency plan was being formulated, regardless who will be Obama's successor. Carstens previously claimed a Donald Trump win would be akin to a “hurricane” battering Mexico, while a win for Hillary Clinton would be less damaging. Nevertheless, he warned the economy would still face a period of volatility in the post-election period.

In addition, Milenio reported Carstens also expressed optimism over the continuing recovery of the economy in the U.S., Mexico’s main trade and economic partner. He also said Banxico is most concerned over an inflation hike should the U.S. Federal Reserve raise interest rates soon.

Economy Secretary Ildefonso Guajardo attempted to downplay Carstens’ worries over Mexico’s financial state following 8 November. According to El Informador on 3 November 2016, Guajardo claimed Mexico doesn't need to feel anxious about the results of the U.S. presidential election. Regardless of who wins, he said it’s vital to ensure strong bilateral trade relations. Guajardo cited during a meeting of the Swiss Chamber of Commerce in Mexico how market and adjustments following the Brexit vote serve as an example of not making overly wild predictions.

Nica Act expected to impact Nicaragua's economic growth

According to Funides Director General Juan Sebastián Chamorro, the proposed United States law known as the Nica Act would provoke a decline in public sector investment and would reduce investments by 5 percent between 2018 and 2020 (Estrategia y Negocios, 12 October 2016). The study, organized by Funides, was presented to a group of Nicaraguan entrepreneurs and economists. Some scenarios from the study concluded between 1 to 1.5 percent of economic growth would be affected by the Act (Nuevo Diario). Chamorro identified three scenarios the country could face: Nica Act isn’t approved; the Act isn’t approved, but indirectly creates adverse economic expectations among investors; and the direct and indirect impact if the Act is approved, which would impact the public sector and generate adverse economic expectations among investors. The study concludes that to guarantee future growth, the country should strengthen institutions and improve the rule of law.