Macroeconomic Forecast El Salvador

June 2007 | Macroeconomic Forecasts

BMI View: According to latest data from the Banco Central de Reserva de El Salvador, inflation appears to be coming down from its peak of 5.6% in January of this year. Indeed, April's reading of 4.4% y-o-y is exactly in line with our year-end forecast. One of the risks to the inflationary outlook is the rising cost of imports due to the weak US dollar, which is El Salvador's currency. That said, recent statements by key members of the US Federal Reserve indicate that rate cuts may be a long way off, which could underpin the dollar and keep a

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