The Second Country Situation Report 2022 presented by the Observatory of Public Policies of Francisco Gavidia University (UFG) indicated that despite the authorities’ efforts, the country is facing difficulties in growth due to the difficult post-Covid-19 situation and the slowdown in the global economy.
In addition, according to the document, the smallest of America’s nations faces the region’s lowest economic growth this year.
Text released Wednesday revealed that remittances fell by 3.5 percent and the outlook for this year is that they will pick up slightly, a situation that will reduce the strength of economic growth in the second half of this year .
The Dean of the Faculty of Economics at UFG, Roberto Morán, made suggestions on the nation’s situation in 2022, including measures to curb inflation and curb the rise in public debt.
The country must pay some of its approximately $800 million in government debt due in January and is negotiating with the International Monetary Fund over unfavorable regulations imposed by that body.
According to economists, the difference between what El Salvador buys and what it sells is unsustainable, and unless authorities take corrective action, the trade deficit could top $10 billion by the end of the year.
The UFG’s second country status report analyzed various points related to the economic and social issue of Salvador.
In its assessment of the trade balance, the document noted that between January and June this year compared to 2021, there is a large gap of 36.1 percent between what is imported and what is exported, meaning the deficit reached five thousand has reached $132 million, a figure that could increase by the end of the year.
In this case, the analysis indicates that the government needs to take corrective action as the trend suggests that economic growth may be limited, which would be due to insufficient resources.
On the other hand, the tense situation of the domestic economy is also influenced by international factors, such as the crisis in the supply chain that began in the middle of last year, which caused the cost of transporting goods to skyrocket by up to 500 percent.
The situation in the countries cannot be compared to the extent that the United States has faced in its supply chain, but there is a kind of domino effect, with the problems in the world’s largest economies affecting other nations, like this in El Salvador the case is.
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