EL SALVADOR: Politics Hampering Economics

CENTRAL AMERICA - Report 27 Oct 2014 by Francisco de Paula Gutierrez
Executive SummaryWe expect the next 15 months in El Salvador to be marked by slow growth, low inflation, and a high, if declining, current account deficit. The fiscal deficit will be stable but high, burdened by pension system financing demands. It is basically the same picture we’ve seen for the past four years, without major change factors looming on the horizon -- although there are risks linked to the country’s ability to finance disequilibria, in a world where liquidity is tighter.The political situation is not improving the economic environment. El Salvador continues to struggle with ...

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