Economic revitalization of El Salvador
Currently, El Salvador is undergoing an economic reconstruction, hand in hand with the government and private enterprise; betting on the reconstruction and construction of new infrastructure, among which stand out housing projects, rural roads and major highways linking the most important departments of the country.
Among the most important projects mentioned by the Minister of Housing, it is intended to allocate about USD 15.9 million for housing and institutional infrastructure projects, including an investment in the Historic Center of San Salvador for the implementation of housing cooperatives, in which the construction of 352 apartments and housing solutions in the Historic Center of San Salvador is foreseen.
On the other hand, the Legislative Assembly recently authorized the Executive Branch to subscribe a loan of up to USD 100 million with the Inter-American Development Bank (IDB) in order to intervene 300 kilometers of unpaved rural national road network. This project will benefit road connectivity in the departments of Chalatenango, La Unión, Usulután, Santa Ana and San Vicente, and is expected to generate thousands of jobs by 2023.
Likewise, on the private enterprise side, the Salvadoran Association of Industrialists (ASI), recently stated that this sector has invested around USD 605.6 million in 2022 in the import of machinery and technological equipment as part of its business innovation processes; it also pointed out that exports from the electronics sector up to September totaled USD 269.9 million.
Good expectations are expected for the year 2023, which could generate more confidence for new investors wishing to settle in El Salvador, the various infrastructure projects, investment in the tourism sector, coupled with the good security environment that exists, will help to give greater fluidity and dynamism to the Salvadoran economy.
Oscar Torres
oscar.torres@garciabodan.com
Partner
García & Bodán
El Salvador