Constraints on Private Investment in El Salvador

Employers point to political instability, energy costs and lack of infrastructure as the main factors keeping out investment and reducing competitiveness.

Friday, July 18, 2014

A survey carried out with employers by the National Association of Private Enterprise (ANEP) showed as its first result the lack of competitiveness of the country in terms of attracting foreign investment, due to uncertainty created by political instability.

The report by the ANEP notes:

"...In the opinion of 73.7% of employers surveyed, the main factor holding back the competitiveness of enterprises and discouraging investment in El Salvador is political instability.

According to the survey, political instability is a much more critical factor when considering whether to invest in the country, even more than the high levels of crime.

Following this is the high cost of electricity and the lack of competitive infrastructure.

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