EL SALVADOR: President Earns Low Marks for His First Year

CENTRAL AMERICA - Report 29 Jun 2015 by Francisco de Paula Gutiérrez and Felix Delgado

Executive Summary We give El Salvador’s new presidential administration a low grade for its first year in office. Growth is still sluggish, and other troubles persist, such as uncontrolled public debt. The adverse business climate is reflected in low private investment, driven by the government’s inability to cope with street crime, and by both the high cost of doing business and uncertainty over the direction of public policy The leading indicator of economic activity was up a meager 0.2% y/y as of April.The criticism of weak control of public finances is reflected in rising public debt, n...

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