Martes, 02 Junio 2015 13:43

Growth and employment figures differ between the government and economist

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Salvador Sánchez Cerén, the president of the Republic said in his report of the first year in the office before the Legislative Assembly that economic  growth and employment are favorable for the country and noted that some of the reasons were the low inflation, 32% reduction in electricity rates since the beginning of this year and increased remittances.

 

However, these aspects  were  criticized  by  three  economic  institutions in the country, La Asociación de la Empresa Privada (ANEP), La Cámara de Comercio e Industria de El Salvador (CAMARSAL) and La Fundación Salvadoreña para el Desarrollo Económico y Social (FUSADES)

“At the end of 2014 our economy grew 2%, exceeding the levels of previous years. Given the national and international environment, we expect growth of 2.5% this year”, the president said, in his speech at the Blue Hall.

However, FUSADES said hardly to grow this year, due to low foreign investment, therefore, little job creation and rising public debt that El Banco Central de Reserva (BCR) located on 5.1% higher compared to last year.

However, the president said that efforts made to bring nine foreign companies and more than 22 already working in the country have been expanded, achieving $414 million in investment creating 800 new jobs.

Figures do not match those presented FUSADES, indicating that are being generated annually on average, 6000 formal jobs, according to the report of El Instituto Salvadoreño del Seguro Social (ISSS)

The report of El Departamento de Estudios Politicos de FUSADES says that while it is true, that investment initiatives totaling $2 billion, it is important to emphasize that this investment for five years of government, leaving an average $438 million annually, “only if and only if “the realization of the projects is achieved, that is, only if it manage to run.

Also another point that president Cerén highlighted as an achievement was that the State Development Bank, which provide $452 million in production loans to poor families and microenterprises, amount this year increased to $500 millions.

At this point it coincides with the private sector, who indicate that the grant productive loans to different people, with the novelty of opening the banking towards women is expected to generate more income for families.