What El Salvador is Losing in Terms of Investment

$500 million is the estimated amount that has not been invested due to bad business climate, poor image and lack of institutional credit, which frightens investors away.

Wednesday, June 12, 2013

These are the indications of the economist and former president of the Central Reserve Bank, Mauritius Choussy: "In four years, the amount lost adds up to $2 billion, which could have generated more than 150,000 jobs. Choussy made this calculation based on the idea that one job is generated for every $20,000 invested, approximately ", reported Elsalvador.com.

The constant fights with the private sector and the attacks on the Supreme Court as well as the management of public finances and the deterioration of record amount of foreign debt, as determined by Choussy, have led to the country having the lowest investment rate and lowest economic growth in the region, influencing factors that will continue into 2013.

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El Salvador: Loan Portfolio Downwards

August 2020

Given the outbreak of covid-19 and the imposition of restrictions on economic activity, between February and June of this year the amount of loans granted by the banking sector reported a 1.2% drop.

Data from the Superintendence of the Financial System (SSF) indicate that between February (the month before the beginning of the health and economic crisis) and June of this year, the credit portfolio contracted by $149 million, from $13.276 million to $13.127 million.

Reduced Investment in El Salvador

May 2013

Lack of policies for attracting investment and the climate of insecurity both legally and for citizens is scaring away local and foreign investors.

In terms of Foreign Direct Investment (FDI), this barely grew, by $22 million, during 2012, closing with $463 million while the previous year it had been $441 million.

Less Foreign Direct Investment in El Salvador

November 2012

As of June 2012 the amount of FDI attracted by the country fell by 52% compared to the same period last year.

According to information from the Central Reserve Bank and the Agency for Investment Promotion and Export of El Salvador (Proesa), from January to June 2012 FDI was $116 million, while in the same period of 2011 it reached $242.2 million.

Investment Down 17% in El Salvador

May 2010

This was stated by The National Development Foundation during the forum “Analysis of the country’s economic situation and its perspectives”.

Forum participants are discussing the economic situation of the country, after one year of having president Mauricio Funes in charge.