Fitch Ratings says that the new government could increase intervention in the economy to the detriment of private investment and growth.
The rating agency foresees a continuation of the tensions between the government and some business organizations hindering the adoption of agreements between them that allow for growth of the economy.
As Fitch points out, "Salvador Sanchez Ceren, inherits an economy facing significant challenges in promoting private investment and growth"
In the region the level of sales tax evasion is around 33% on average.
From a statement from the Central Institute for Fiscal Studies (Icefi):
The Central American Institute for Fiscal Studies presents the seventh edition of its analysis of the situation in Costa Rica.
Icefi: It is urgent that the two contending political parties specify a plan that will allow them to balance fiscal accounts and fulfill their campaign promises.
Although improvements have been noted, the region's human resources are still far from achieving the level necessary to sustain competitive economies at the global level.
The Human Capital Index, constructed by the World Economic Forum, provides a long-term focus on how nations are developing their human capital and establishing workforces prepared for the demands of the increasingly competitive global economy.
The amount of remittances from one Central American country to another now reaches $1 billion.
Revistamyt.com reports: "The money transfer company AirPak, representative of Western Union (WU) in Central America, has announced the start of a strategy that aims to compete in the market of remittances sent by internal migrants in the isthmus."
According to Carlos De Paredes, manager of the company in Guatemala, the local market is worth around $300 million and about $1 billion at the regional level. The firm has no presence in Panama.
After remittances, tourism is the largest contributor to the economy, contributing 3.2% to GDP.
In 2009 the contribution of tourism to GDP was 2.5% and it is projected that in the next five years it could grow to 5%. But this is still far from the contribution made by remittances, which come mainly from the U.S.
Data from the Central Reserve Bank reveals that "...
The industry average nominal wage is $549, but in certain areas such as paper and cardboard it is $609.
This was explained Doris de Rivera, industrial manager of the Salvadoran Association of Industrialists (ASI). Globally, private sector employment has increased by 31% compared to the first six months of last year.
Elsalvador.com reports: "Regarding the increase in the number of jobs in companies which produce and distribute paper, cardboard and printing there was an increase of 4.2%, approximately 337 jobs."
During the month of September, the country received $315.4 million in remittances, $12.7 million more than in the same period in 2012.
From a press release issued by the Central Reserve Bank of El Salvador:
Salvadorans living abroad sent remittances worth $2.9317 billion in the period between January and September 2013, an increase of $38.4 million, equivalent to a growth rate of 1.3% annually.
Political parties are not interested in the subject because it is not profitable electorally or because they believe their country will lose sovereignty.
So says Richard Aitkenhead, president of Grupo Inversiones y Desarrollo de Centroamérica (IDC) during a meeting organized under the framework of the Second Support Program for Regional Integration (PAIRCA II).
Analysis of debt sustainability in Central America, economic growth, inflation, revaluation and management of the fiscal deficit.
Central America Fiscal Lens No. 5 reported that gross domestic production in Central America in 2012 amounted to U.S. $184.000 million. The fastest growing economies were Panama, Costa Rica and Nicaragua.
As for exports, although they grew by 7.1%, they were quite far from the 20.5% achieved in 2011.
In relation to GDP, the expenses of the Costa Rican state are the highest in Central America.
This was revealed by a survey conducted by the Central American Institute for Fiscal Studies (Icefi). Second place is occupied by the Government of Panama with 23% of GDP followed by Guatemala which has one of the lowest with 15.1% of production.
Costa Rica is the only Central American country which plans to increase current spending to a total of 18.6% of GDP, also the highest in the region. "... The tax burden is not enough to fund the standard of living in terms of public service delivery," said Renato Vargas Icefi analyst.
Of the $34.095 billion in Foreign Direct Investment in Central America which arrived in the last 4 years $21.925 million left the region in the form of expenses.
The information comes from a report by the Central Institute for Fiscal Studies (ICEFI), which reveals that the most affected country is Guatemala, where outflows were 1.3 times more than income.
The Central American Economic Integration Secretariat has provided a summary and analysis of the main stylized facts of the macroeconomic situation in Central America, during the first quarter of 2013.
The report provides an analysis and summary of the main facts of the macroeconomic situation in Central America and the world.
Highlighted in the report is a slow down in growth in emerging economies such as China, and the persistent nature of the recession in the Eurozone, these effects appear to be important risk factors for the recovery of the world economy.
According to FUSADES, during the period GDP grew by 1.4%, there was a slight increase of 5.6% in exports and the investment climate remained unfavorable.
The Salvadoran Foundation for Economic and Social Development (Fusades) has released its Situation Report for the first quarter of 2013, which also highlights the unsustainability of the fiscal situation.
the report presents a series of statistics and relevant findings on key demographic, social, economic, environmental and regional policies.
From the introduction:
This document is a tool for Central American societies which can be used for monitoring, analysis and constructing knowledge about the advances and letdowns in sustainable human development in the region during the first decade of the century.
In 1999, government spending on subsidies was $13 million, a figure which has multiplied 30 times, reaching $471 million in 2012.
In an event organized by the Salvadoran Chamber of Consulting Firms (Camsec) and the Union of MSMEs, union president, Jorge Daboub, revealed that while in 1999 the country spent $13 million on payments of subsidies, specifically for liquefied gas oil, by 2012 they had increased to $458 million, which represents an increase of 3523.1%.