Tuesday, 18 July 2023 04:16

Exports fall 7% in the country according to analyst Carlos Acevedo

Written by Miguel Crespín

In an interview with Frente a Frente, former president of the Banco Central de Reserva (BCR) and economic analyst, Carlos Acevedo, provided data on how the country's economy is moving.

 In the case of exports, between january and may they have fallen 7% compared to the same period last year, which could limit the 2.8% growth forecast by the BCR for the end of 2023.

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However, remittances increased in the first 4 months of 2023, by 5.5%, which generates a possible 2% growth, despite being in the final stretch of this year.

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On the inflation side, which remains at 3.8%, El Salvador is being affected by international contexts, so the price of consumer goods cannot be controlled.

An example is the issue of food, which has a 7% inflation in its prices. This is due, according to the analyst, to the fact that our neighboring countries: Guatemala, Honduras and Nicaragua; who export most of what is consumed in the country, have higher inflations than El Salvador.

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In the area of tax collection, Acevedo pointed out that the amount of money that has entered the Ministry of Finance has been reduced, which does not mean that the work is being done badly, but rather that the current limitations are causing it.

Even so, the former official does not believe that the country will enter into an economic recession, due to the fact that the United States is not in its worst moment, which benefits El Salvador. The salvadoran economic stability in its average growth of 2% in recent years, is a factor that also adds to avoid future crises.

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But Acevedo, thinks it is possible that inflation will be decreasing, until the end of the year to a possible 2%.

"El Salvador is not doing well, but not as bad as we expected", said Acevedo. This because the country, according to the analyst, its economy grew 0.8% in the first quarter and continues with a growth projection of over 2%.

The former president of BCR also pointed out that foreign investment is necessary in order to achieve a complete economic reactivation.

 

Translated by: A.M