In addition, China cut interest rates last week, as reported by international media.
China's central bank cut a key interest rate on monday in an attempt to counter the slowdown in economic growth following the COVID-19 pandemic.
The one-year prime lending rate, which serves as a benchmark for corporate loans, to 3.45% from 3.55%, the People's Bank of China said in a statement, while the five-year LPR, which is used to price mortgages, remained at 4.2%.
But what implications does this news have for El Salvador. China is one of the most important suppliers of raw materials in construction and for the local industry; therefore, it will have effects in a few days, probably in the increase of the prices of materials for the construction of houses or buildings. Also, to obtain raw material for the elaboration of instruments such as tools or the manufacture of plastics.
Although El Salvador has an important manufacturing of chips for use in computers, vehicles, among others. Which could benefit the fact that China has lowered its production.
China in its latest publication detailed that youth unemployment reached an all-time high of 21.3%, which is alarming.
Translated by: A.M