Brakes on Competitiveness in El Salvador

Informality in the labor sector, low levels of taxation and little investment in innovation and development are some of the obstacles the country is facing in terms of competitiveness.

Monday, September 17, 2018

The Ministry of Economy presented the "First National Competitiveness Report", which analyzes more than 200 indicators obtained from indices prepared by international organizations such as Doing Business, Competitiveness Index, Trade Facilitation, Global Innovation, Connectivity and Index of Performance of Energetic Structure.

The Deputy Minister of Economy, Julian Salinas explained to Dinero.com.sv that " ... among other things, the weaknesses that El Salvador faces in being competitive are the high rates of informality in the labor market, in addition to a low coefficient of taxation, "little expenditure" by the private sector in research and development and a poorly developed financial market. "

According to the report, in 2017 " ... 46.9% of El Salvador's EAP was in the informal sector and the rest (53.1%) in the formal sector. "

Through a statement, the Ministry of Economy explained that the seven areas covered by the report, ordered from the most advanced stage to which a country should aspire to, to the most basic, are: Innovation, Science and Technology, Internationalization, Productive and Business Development, Energy and Natural Resources, Human Capacities, Infrastructure and Logistics and Institutionality. These areas capture a systemic approach to competitiveness.

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