Brakes on Investment in El Salvador

Industrialists are pointing to political and legal uncertainty, high crime rates, corruption, bureaucracy and red tape as the main factors that are keeping away investors.

Friday, October 3, 2014

According to the Salvadoran Association of Industrialists (ASI), the government is not providing the right conditions in the country for the economy to grow, but, on the contrary has adopted tax reforms, which do not contribute its reactivation.

The president of the ASI, Javier Siman told Elsalvador.com that "... unfortunately, the national atmosphere is not the most favorable for generating investment. Our country has the lowest economic growth in the region and the lowest level of investment. Declining economic indicators reflect the stagnation of our economy. The levels of debt and public spending exceed sustainable limits. "

"... Despite the negative numbers in terms of growth, according to estimates by the union, but between January and June this year, although 5,700 thousand jobs were lost between July and August they have been able to recover 2,800 of these. "

More on this topic

Not the Way to Improve the Business Climate

October 2017

Salvadoran industrialists claim that with the presidential veto of the administrative simplification law, the country has lost a valuable opportunity to improve the already deteriorated business climate.

EDITORIAL

With the veto of the Administrative Simplification Act, the Salvadoran government is sending a clear message to the business community and to society in general: There is no interest in paving the way for the private sector to generate more jobs and, consequently, more wealth and socioeconomic development.

El Salvador: Not Just Laws, But Concrete Actions

October 2012

Beyond the new laws to promote domestic and foreign investment, the government must demonstrate the existence of legal security in El Salvador.

An article in Diario El Mundo reports that "The reform package that the government recently introduced to encourage domestic and foreign investment in the country, yesterday received the backing of the business association although they say there is still a lot to be do done."

Industrial Exports Stalled

October 2012

The Salvadoran industry sold $3,649,000 worth of goods between January and August 2012, 0.5% less than in the same period in 2011.

The decline occurred despite a 8.5% increase in export volumes, which reached 2.009 million kilograms, 158 million more than in the previous year.

Investment Flees Due to Political Instability

June 2012

"Nothing threatens stability as much as lack of respect for the law. No one invests in an unstable country," Javier Siman, president of ASI.

An article in Elsalvador.com reviews a speech by the president of the Salvadoran Association of Industries (ASI), which criticizes "the ongoing confrontation between the Legislature and the Supreme Court, and the government and private enterprise."

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