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.
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."
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.
Nicaraguan businessmen believe that electoral reform is essential to reactivate the country's economic activity, which has been in decline since the crisis erupted in 2018.
According to estimates by the International Monetary Fund (IMF), Nicaragua's Gross Domestic Product contracted by 5.7% in 2019, a drop that complements the year-on-year variation of -3.8% recorded in 2018.
The electoral triumph of Alejandro Giammattei and the appointments he is making in his cabinet to assume next January 14, are the main reasons that explain the upturn that has had business confidence since July.
Following the path chosen by its neighbors Panama and Costa Rica, the Salvadoran government has announced the opening of diplomatic relations with China and a rupture with Taiwan.
Reactions to the announcement by President Salvador Sánchez Cerén did not take long.The US government expressed its opposition, stating that the decision will bring negative consequences for El Salvador, while opposition politicians accused the government of wanting to ease the way for China to be granted the concession to operate the port of La Unión.
Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.
The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.
Financial executives point out that in order to regain confidence in the economy, the country is urging improvements in legal certainty and a reduction in political instability.
Sergio Recinos, president of the Bank of Guatemala (Banguat), told Prensalibre.com that "... this year we must improve matters related to legal certainty for investors andpolitical stability.These same business people have expressed in indices that measure the climate of confidence their concern that there should be 'clear rules'."
According to Fitch Ratings the reelection of Daniel Ortega as president of Nicaragua means stability in the country's economic policies.
EDITORIAL
Stability and economic and political continuity is what Fitch Ratings envisages for Nicaragua after the outcome of the presidential elections last Sunday, in which President Daniel Ortega was declared the winner, with 70% of the vote, according to a report by the Supreme Electoral Council.
The vast majority of nicaraguans intend to vote for the re-election of the current President, Daniel Ortega, which would ensure the continuity of the current policies used to run the country.
EDITORIAL
Confirming what has been published by other pollsters,M & R Consultoresnotes that the results of its seventh national survey put the clear favorite to win the presidential election as Daniel Ortega and his wife Rosario Murillo, who accordingtothis survey now have 66.3% of the vote. The nearest contender has only 8% of the vote, while the so-called hidden vote is 20.6%.
If Central America does not strengthen the institutions that ensure a stable legal framework and full respect for contracts, foreign investment will not come and national investment will go to other countries, no matter how many incentives and tax exemptions are offered.
EDITORIAL
The frequent displays of discontent for the Salvadoran Executive Branch in respect to rulings issued by the Constitutional Court and the inaction of the Panamanian government over blockades by a group of people are holding not only over the hydroelectric project Barro Blanco, but also the main access roads, are appalling signals sent from the region to the world, casting doubt on those companies who consider the region to be a potential investment destination.
When you look at Nicaragua without prejudice and without political bias, you can see a country which unlike before, offers good opportunities for investment.
EDITORIAL
Central America Viewed from Within
When you look at Nicaragua without prejudice and without political bias, you can see a country that offers good opportunities for investment.
And who better to do that exercise than a businessman linked to actual production.
The Otto Perez Molina administration appears to be disintegrating in time with the successive dismantling of networks of entrenched corruption at the highest level, jeopardizing the country's basic institutions.
EDITORIAL
There are very few occasions when political parties with different ideologies and civil groups with dissimilar origins in Latin America have teamed up to denounce the same cause, as is currently happening in Guatemala.
The new government in El Salvador is keeping almost the same ministerial team as the Funes administration, ensuring the continued deterioration of the economy and lack of eligibility for investment.
EDITORIAL
Unfortunately "dedollarization" has been ruled out by the elected President Sanchez Ceren, which, as the next president lamented, implies that "you cant resort to a monetary policy." Our opinion is -on the contrary- that formal dollarization in force in El Salvador is a barrier to greater government fiscal outrages.
"Murillo and Ortega together are forging a level of control that political observers say holds echoes of the sort of family dynasty that the Sandinista Front once took up arms to topple."
"Dynasty," is how the U.S. Newspaper Kansas City describes the government of Daniel Ortega and in which it discusses the influential role played by his wife Rosario Murillo in every government decision.