EL SALVADOR: Stiff Challenges

CENTRAL AMERICA - Report 29 Sep 2013 by Francisco de Paula Gutierrez
Executive SummaryEl Salvador’s next president won’t have an easy time of it. His major challenge, after taking office next June, will be to restoke growth, dragging along at about 2% since 2009, when real GDP declined by 3.1%. Our 2013-14 forecast points to more of the same. A key element will be restoring private sector confidence. And that will require reviving public-private sector trust that, despite some efforts by the current Mauricio Funes administration, has deteriorated.We can see the decline in the business climate in shrinking private investment and in El Salvador’s sliding ranki...

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