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The high access costs, high interest rates, the lack of products and services that add value to the users and the complexity of use are the main factors that make the financial industry one of the least appreciated by users, especially in regions such as Latin America and the Caribbean.
The first half of 2019 has been very active in the fields of Trade, Customs and Indirect Taxes in Central America. During 2018 the countries of Costa Rica, El Salvador, Honduras, Nicaragua and Panama signed the Free Trade Agreement with Korea, and Costa Rica ratified the Treaty this past March 2019. This Agreement signifies a step towards free trade with Asia, and it supports the regional efforts to create better economic opportunities in the commercial field. Some of the products that the region exports, such as sugar, coffee, fruits, agricultural and fish products will be exported with zero duties. And on the other hand, Korea´s imports such as vehicles, machinery and cellphones will enjoy free trade when imported into Central America. It’s an opportunity for the region but also a challenge especially in investment, where an effort is needed to attract FDI from Korea into Central America. But it is also a chance for sectors such as technology, telecommunications and innovation to be further developed by the countries with the experience of Korea.
Like many other countries in the region, Costa Rica has entered a process of demographic transition characterized by a decrease in its younger demographic groups. This is a consequence of two main factors (both of which are related to significant improvements in the health care system): a decrease in fertility rate and an increase in life expectancy. The described phenomenon has entailed significant changes in the economically active population (EAP), and it is estimated that by 2050, the EAP pyramid will be almost rectangular.
In Guatemala, retirement is treated differently for public and private employees. For public employees, the following regulations apply for each retirement plan:
a. Voluntary (1): when an employee has 20 years of service regardless of his or
her age .
b. Voluntary (2): when an employee reaches age 50 and proves a minimum of 10 years of service.
c. Mandatory: when an employee has reached 65 and proves a minimum of 10 years of service.
On 10 January 2017, the European Commission presented a proposal for a regulation on privacy and electronic communications, repealing the ePrivacy Directive 2002/58/EC that was revised in 2009. The proposal aims to establish a new data protection legal framework by complementing the General Data Protection Regulation 2016/679 (GDPR) regarding electronic communications data.
Our latest M&A report notes that regulation, trade and tariffs may foster a deal hiatus for some, while many others move forward with acquisition plans. What does all this mean for the deal market? The speed of change is relentless and M&A has proven to be an effective means to move quickly to gain competitive advantage or defend against future disruptors.
Digital transformation is changing everything, fast, and business leaders recognize this.In EY’s 2018 Digital Deal Economy study, 87% of executives responded that they expected moderate to complete disruption of their sector over the next two years.