El Salvador: Productive Sector Not Optimistic

The continuation of the slow recovery of the U.S. economy and increased exports to other Central American countries, are the only glimmers of hope to which businesses are clinging to reach 2% growth. If achieved, such growth rates will be considered very good for 2012, a year that will be marked by adverse conditions for the country's productive sectors.

The almost inevitable recession in Europe and the lack of further financial support from the Government are the main causes for the discouraging view of businesses.

Mario Magaña, director of economic and commercial affairs at the Chamber of Commerce and Industry, said another important factor must be added to the mix: foreign investment. "In recent years it has been pretty depressed. El Salvador is at the bottom with between 300 and 400 million dollars per year, even below Nicaragua and Honduras, who have been receiving about 800 million a year. In addition, local investment is also quite stagnant. "

Source: elsalvador.com

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