Evaluating the market in El Salvador

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Business environment in El Salvador

The country has a high and growing level of public sector indebtedness (65 per cent of GDP). With gang violence unlikely to improve in the short term, investment will continue to be constrained. The recent fiscal compact by congress has helped the country avert a default in the short term; however, liquidity risk remains, and domestic arrears have been reported. Manufacturing, which accounts for roughly a quarter of GDP, will remain on the uptrend after growing 1.6 per cent YoY through May 2019. The country ranks 95th in the World Bank’s Ease of Doing Business Index due to corruption, excessive bureaucratic red tape and weak investor protection.

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Alicia McCarthy

Senior Trade Advisor, EDC

Alicia McCarthy  Senior Trade Advisor, EDC