Monday, 23 August 2021 20:11

Remittances, exports and VAT collection are the main factors of economic growth in the country: ANEP

Written by Evelyn Alas

The Executive Director of the Asociación Nacional de la Empresa privada (ANEP), Leonor Selva, and the Economic manager of this institution, Waldo Jimenez, gave a biannual report detailing the factors that will make a possible economic growth of 9% by the end of 2021.

ANEP representatives indicated that this growth is due to the fact that the country has a positive increase in remittances, as well as a growth in exports and an increase in tax collection.

So far in 2021, remittances increased 40% to US$4,285 million, a positive growth.

Likewise, the increase in remittances in El Salvador is due to the fact that salvadorans residing in the United States, since march 2021, receive a subsidy due to the loss of jobs by Covid -19, delivery that ends next september.

Another factor that is contributing to economic growth are: exports, which until june of this year grew by 7%, among the non-traditional export sectors and in maquila exports, exports grew by 10%.

The representatives of ANEP, said that the collection of Value Added Tax (VAT) from 2019 to 2021 has grown by 38%, a percentage that indicates that companies are producing more and therefore there is a higher payment in terms of VAT collection.

The representative of ANEP, Waldo Jiménez indicated "We are going to finance almost 100% of the General Budget of the Nation of what was budgeted".

Also, ANEP representatives informed that the Revenue collection increased by 28% in 2021 compared to the year of the pandemic.

As for contributors to the Instituto Salvadoreño del Seguro Social (ISSS), the report indicates that it has fallen by 3.5% with respect to 2021, this is due to the fact that it has not been possible to recover jobs that were lost during the Covid-19 pandemic.