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Business and Economics > Production and Operations Management

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Cover IMF Staff Country Reports
El Salvador: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This paper focuses on policies to raise growth; underpin fiscal sustainability while enhancing social safety nets; and strengthen financial sector stability, deepening, and inclusiveness. GDP growth averaged 2 percent during 2000–14, well below the Central American regional average of 4½ percent. While the underlying causes of the low growth are complex, a key channel through which they are evident appears to be low investment. Given the need to increase growth, revenue-raising measures should be accompanied by cuts in distortionary taxation. Stress tests suggest that financial buffers are adequate to contain most risks. The financial deepening and advancing financial inclusion could have a meaningful impact on both growth and poverty.
Keywords:
ISCR; CR; TFP growth; employment growth; TFP; crowding out; liquidity; productivity shortfall; labor market rigidity; TFP performance; liquidity constraint; Pension spending; Fiscal rules; Pensions; Central America; Global
Cover IMF Staff Country Reports
Nicaragua: Selected Issues
International Monetary Fund
The paper is an elaborated report on Nicaragua’s potential economic growth. The challenges and idiosyncratic shocks were immense but the policies of better education, labor contracts, and accomplishments in public investments paved the way for movement of the economy. The external competitiveness and exchange rate assessment also have an important hand. The achievements in the electricity sector and the improvement in reforming the pension system are the prominent aspects. On the whole, the Board considers this growth as a positive trial of development in the global panorama.
Keywords:
ISCR; CR; tariff; minimum wage; maquila export; tariff-cost gap; generation cost; reserve coverage; tariff policy; tax shock; Doing Business Indicators rank Nicaragua; Electricity; Tariffs; Output gap; Total factor productivity; Public investment spending; Central America