El Salvador's economic statistics

The Executive Board of the International Monetary Board recently completed consultations with the government in El Salvador and published these economic statistics:
[The Salvadoran] economy has strengthened. Growth has picked up and is running at 3 ½ percent thus far in 2006 (2 percent per year in 2000-05), spurred by investment and exports. Despite the full pass-through of higher oil prices, year-on-year inflation fell to 3 ½ percent in May 2006, the lowest level in the region. The external current account deficit widened slightly to 4½ percent of GDP in 2005. Sovereign spreads have remained among the lowest in the Latin America region.

Fiscal policy has aimed at stabilizing the public debt/GDP ratio and strengthening debt management. The 2006 budget limits the deficit to 3 percent of GDP, which implies a primary deficit of some 0.7 percent and will maintain public debt at around 42 percent of GDP, with the nonfinancial public sector debt at 40 percent. Tax revenue has been strengthened by tax measures approved in late 2004/early 2005, as well as recent efforts to broaden the taxpayer base. As budgeted, this revenue gain is largely offset by higher energy subsidies, wages, interest, and pension outlays. The increase in capital spending achieved in 2005 has been maintained in the 2006 budget.

The IMF is generally complementary of the pro-business policies of the ARENA government. Noticeably absent is any mention of plans by the government to make any significant improvement in spending on health, education, or poverty reduction. Also absent is any discussion of the great disparity in distribution of the economic wealth behind these statistics.


Hodad said…
RIGHT ON with this info, of course they do not divulge monies out for these programs,
food is expensive here and this government's changes in the 'tramites'[paperwork and permissions] to get approval to import food from North Carolina are more strigent and more paperwork,
so it seems there is quite a lot of corruptive practices here in some Government Ministerios
we will see..... as I am investigating,
if so then all my Senators and Reps will hear from me.
it is not right to do this and with CAFTA I am not supposed to pay duties on Imports from NC
we will see and believe me I will post my progress in blogs
most here not happy with high food costs, and more street protests are imminent after vacations