Economy predicted to improve in 2011
Government officials are predicting economic growth for 2011 in El Salvador. This follows a year of little growth in 2010 and economic contraction during 2008 and 2009 in the depths of the global recession. From a report on the Inside Costa Rica website:
Treasury Minister of El Salvador Carlos Caceres is said to be confident of a 2.5 percent economic growth in the country next year.President Funes described the elements of the $1.2 billion in public spending:
The Gross Domestic Product [growth rate] will not reach the one percent forecast for this year, and fluctuated from 0.7 to 0.8 percent after having fallen into negative figures (-3.3 percent) in 2009.
In remarks to a TV program, he cited factors for recovery in 2011, including a more stable situation in the United States, on the economy of which El Salvador is very dependent. He also referred to an increase in remittances from Salvadorians living abroad, estimated at about 18 percent of the GDP, and a more favourable situation in agriculture, with high coffee sales, as well as high sugar prices at international market.
Public investment[stimulus], estimated at USD $1.20 billion, is also expected to be another factor for growth in 2012.
Funes said that the government will spend over 1.2 billion dollars, with which he hopes to encourage, too, the private sector.
It is a golden opportunity to provide families in El Salvador with work, service, employment and income, Funes said in one of his recent speeches.
The plan could shore up the construction industry that generates many jobs. It has been three years in a row in recession with negative numbers.
Government's social programs are also aimed at helping medium, small and micro enterprises to foster business and thus create jobs.
More than six thousand of these entrepreneurs make uniforms, shoes and school supplies for the Ministry of Education that distributes them, free of charge since last year, to more than 1.3 million students.
The government estimates that comprehensive health reform, underway since last year for universal health care to previously excluded sectors, can generate about 14,000 jobs.
In addition, there'll be investment in infrastructure, productive partnerships with private capital, increased wages and pensions to the public sector that besides improving the living conditions of public employees, they will increase domestic consumption.