Thursday, 09 February 2023 15:41

Salvadoran economy could grow 1.3% in 2023 according to economist Mauricio Choussy

Written by Evelyn Alas

In a morning interview, economist and former president of the Banco Central de Reserva (BCR), Mauricio Choussy explained that El Salvador will grow this year, but it will slow down, reaching a Gross Domestic Product (GDP) of 1.3%.

He also affirmed that the inflation that is worldwide is hitting households hard, but there is one thing that is more worrisome and that is the increase in the cost of the basic food basket.

This could increase between 5.7% of poor households in El Salvador, and if the basic food basket is not covered, the level of extreme poverty in the country would increase.

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The economist added that the country's remittances are not growing at the same rate as they are growing in the rest of Central America. The reason why remittances continue to grow in those countries is because they still have a very strong migratory flow.

He said that Honduras already receives more remittances than El Salvador, it has always been the other way around.

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Likewise, on the fiscal deficit side, last year it decreased by almost 60% in good measure, because of an increase in tax collection, the Central Government managed to increase collection without increasing taxes.

He also said the fiscal effort made by the authorities and the fact that they were able to pay the bond on time, being a sign of fiscal responsibility that perhaps the markets have not valued it as they should have, but the obligation was fulfilled.

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For this year, medium and small businesses and tourism are benefiting from crime control.

 

Translated by: A.M