Political Climate, Pessimism and Investment Attraction

Due to the dismissal of high ranking officials of the justice sector and the fact that President Bukele has strained his relationship with Washington, Salvadoran businessmen foresee an uncertain future for US investments that may come to the country.

Tuesday, May 25, 2021

After the dismissal of the magistrates of the Constitutional Chamber and the Attorney General in El Salvador, the business sector affirmed that this situation was "facts that consolidate an attack against democracy and threaten the liberties of Salvadorans."

In this context of political changes, the Central American country has given a turn to its foreign policy, since in the last days the Bukele administration has approached China, a situation that was evidenced on May 19 when the Salvadoran Assembly ratified a framework agreement signed with the Asian giant.

This legislative endorsement came a day after a list of 17 corrupt Central American officials was made public in the United States by the State Department at the request of Californian congresswoman Norma Torres, which includes Bukele's chief of staff, Carolina Recinos, and former Security Minister Rogelio Rivas. See "Bukele's Diplomacy: The United States, China and the Game of Displacements."

The facts are reported in a scenario in which several US companies are opting to move their operations from China to America, due to the trade war that both powers have maintained in recent years.

According to local businessmen, the country has the capacity to attract investments from U.S. companies that have decided to move their operations out of China, however, currently it is complicated due to the uncertainty that exists because of the movements that have been reported in local politics.

Marvin Melgar, president of the Chamber of Exporters of El Salvador (Coexport), told Elmundo.sv that "... the guild is waiting for the trade relationship with the United States to remain intact and for there to be no scenarios that put this stability at risk, especially after a growing confrontation between the Executive and its US counterpart."

Melgar added that "... some of the measures are at stake. We hope that nothing happens and that there are no measures that could punish us in the commercial relationship. We are a small, poor country, dependent on that historical relationship with the United States and with a very important trade flow that sustains jobs in the country."

¿Sabía que ahora somos parte de algo más grande?
Conozca PREDIK Data-Driven, nuestra nueva marca global.



More on this topic

Blow to Democracy Reported

May 2021

After the dismissal of the magistrates of the Constitutional Chamber and the Attorney General in El Salvador, the business sector affirms that these are "facts that consolidate an attack against democracy and threaten the liberties of Salvadorans".

In the elections held last February 28, Nuevas Ideas, a party led by president Nayib Bukele, achieved a resounding victory that allows it to have a qualified majority in the Legislative Assembly.

Bukele is Gaining Ground: What's in Store for El Salvador?

March 2021

After Nuevas Ideas, the party led by president Nayib Bukele, achieved a convincing victory that would allow it to have a qualified majority in the Assembly, the country will face a scenario in which this political group would have enough power to make transcendental decisions.

For two years now, Nayib Bukele has won the presidential elections in El Salvador. The 39-year-old political leader became the country's first magistrate with promises of making a "different politics."

Winds of Change and Positive Prospects

September 2019

Generating a positive perception of the country, improving the relationship with the U.S. government and taking control of the penal centers are some of the actions highlighted by the business sector of El Salvador, regarding the first 100 days of the Bukele administration.

After the country had been governed for the past three decades by the traditional ARENA and FMLN parties, in early February of this year Nayib Bukele ended that dominance by winning the presidential elections with the promise of a "different policy."

Foreign investment fell by global financial crisis

April 2008

The recent turbulence in international financial markets have slowed the flow of Foreign Direct Investment (FDI) was Guatemala.

The slowdown of the world economy and the threat of recession in US There have already been felt in Guatemala, with a decline of foreign investment in the país.

 close (x)

Receive more news about Foreign Direct Investment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Dec 6)
Brent Crude Oil
70.97
Coffee "C"
242.5
Gold
1,782
Silver
22.505