El Salvador: Economy Adrift

Businesses from the National Development Foundation (Funde) indicate that, after two years of rule by Mauricio Funes, the country’s economy lacks clear direction.

Thursday, September 1, 2011

With an eye on the threat of a new global recession, the government is being accused of failing to take advantage of the surge in tax revenues and remittances from abroad to do work "that will generate productivity, instead of the contrary, spending all its income on subsidies and salaries for public employees. "

The economy of El Salvador is also being severely affected by rising levels of insecurity and crime, distrust in political stability, and lack of incentives for investment.

"The executive director of Funde, Roberto Rubio, said that while other countries are working on attracting investment and making preparations, including for another recession, the Salvadoran government still doesn’t have a concrete plan for the economy ‘At least, there is no plan that we know of’”

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

El Salvador: Economic Recovery Plan

January 2020

Nayib Bukele announced that his administration will implement the "Economic Takeoff Plan", which aims to create the conditions for the economy to grow above 3.5%.

The plan will focus on articulating government efforts in the agricultural sector, telecoms through connectivity and education focused on preparing the new generations in the framework of the fourth industrial revolution.

Guatemala: Is it Possible to Increase Competitiveness?

February 2018

The plan proposed by the Morales administration to increase the country's competitiveness focuses on the development of forestry, agriculture, textiles, clothing and footwear, metalworking, light manufacturing, tourism and construction, among other things.

Authorities at the National Program for Competitiveness -Pronacom- presented guidelines for the National Competitiveness Policy 2018-2032. This set of strategies, which aims to establish guidelines on competitiveness at the national and regional level for the next 15 years, was developed jointly by the productive sector, public sector, academia and civil society.

El Salvador Not Complying with IMF Recommendations

May 2016

"We, at this moment in time, do not believe that these recommendations should be promoted because we are carrying out a series of readjustments that we believe are more relevant".

The Sanchez Ceren administration has ruled out addressing the recommendations made by a mission from the International Monetary Fund to correct the wrong direction of the Salvadoran economy.

IMF Visits Honduras for Credit Negotiations

September 2010

The visit marks the resumption of negotiations for a $220 million loan to go toward financing the 2011 budget.

The Honduran government's $6.9 billion budget for 2011 is currently pending approval by Congress and according to local media seeks to stimulate the economy by financing public investment and production.

ok