Recent economic performance of El Salvador

Abstract

The conjuncture can not make an abstraction of the antecedent or of the structural aspects that are determinant in the present economic behavior; neither is an economic phenomenon isolated; necessarily is binding with what happens in the political, social and environmental. On the other hand, the dependence of the Salvadoran economy has been more obvious in the last twenty years, highlighting the income of foreign currency for family transfers from abroad and relatively less the proceeds from the sale of goods and services. This behavior is the result of a null productivity and competitiveness that does not allow to expand the productive and export base of the country. The patterns of consumption that do not correspond to those of a country with a low level of production, but at a higher income than the latter, are consistent with a society with a significant percentage of its inhabitants who become accustomed to remittances and disregard the level of basic preparation and its own capacity to assimilate and produce technology. The average propensity to save and to invest have been reduced, to which is added a little country attraction for foreign investment. Government authorities try to solve the dilemma of attracting more income and / or promoting wealth (productive capacity). Finally, it is urgent to depoliticize the work of the country, which move in an environment of political polarization that hinders the natural growth potential, even if not necessarily effective in the country.