More than $34.4 million will be implemented by Economía for investment projects from loans
The Minister of Economy, María Luisa Hayem, presented this Friday to the Finance Commission of the Legislative Assembly the composition of the institution’s draft budget for 2025, for an amount of $75,210,044, most of which would be allocated to projects public investment.
12% of the amount will be given to the Secretary of State for administration, 42% to the affiliated institutions and 46% for investment projects, which is just over $34.4 million.
The funds for the investment project come from loans by the Andean Development Agency (CAF), the Inter-American Development Bank (IDB) and the International Bank for Reconstruction and Development (IBRD).
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The projects that will be implemented are: Program for Simplifying and Digitizing Procedures; Program to Assist, Promote and Attract Investments for Employment Generation; Program for a modern and transparent digital ecosystem for foreign trade in El Salvador; A program to improve the digitization of control practices in El Salvador; Institutional Strengthening – IDB Operational Unit, Program to promote employability and improve access to wage employment; Program to promote entrepreneurship opportunities and institutional strengthening – BIRF Operational Unit.
“We have seen more and more interest from our diaspora, from our close brothers, in investing in our country. “We are seeing new investments from different countries, such as Germany, the United States and Korea,” said Hayem.
In terms of spending, $5.6 million will be to pay wages, $17.7 million to acquire goods and services.
While the affiliated institutions that receive their budgets through the Ministry of Economy are: INCAF, CONAMYPE, Consumer Ombudsman Office, CIFCO, General Directorate of Energy, Hydrocarbons and Mines; The National Digital Assets Commission, the Competition Authority, the National Quality Council, the Bitcoin Assets Regulatory Group, INSAFOCOOP and the Auditing Council of the Public Accounting and Auditing Profession.
In her presentation, the minister assured that 2023 closed with an economic growth of 3.5% for the country and that 3,341 new companies were created in different sectors that year, such as trade, manufacturing, tourism and technology.
2024-11-30 00:42:00
#Economys #budget #loans
## El Salvador Invests in Growth: A Q&A on 2025 Budget and Loan-Fueled projects
El SalvadorS economy is set for a boost with over $34 million earmarked for investment projects in 2025, funded by international loans. This ambitious plan, outlined in the Ministry of Economy’s proposed budget, highlights El Salvador’s focus on economic advancement and attracting foreign investment. Today, we delve deeper into the details with Juan Carlos Zuñiga, an economist at the Central American Institute for Fiscal Studies (ICEFI), shedding light on the potential impact of thes projects.
**Understanding the Investment Landscape**
The 2025 budget allocates a significant portion – over 46% – to public investment projects supported by loans from the Andean Development Agency (CAF), Inter-American Development Bank (IDB), and the International Bank for Reconstruction and Development (IBRD).
**Juan Carlos Zuñiga**: “This strategic financial approach demonstrates El Salvador’s commitment to utilizing external funding for crucial infrastructure and development initiatives. These loans, with favorable terms and conditions, enable the government to invest in projects that would or else be challenging to finance domestically.”
**Key Investment Areas**
Several vital sectors are targeted for investment, including streamlining government processes, promoting foreign investment, enhancing digital infrastructure for trade, and bolstering entrepreneurship and employability.
### **Driving Economic Development Thru Strategic Investments**
**What are the long-term economic benefits El Salvador anticipates from these investments?**
**Juan Carlos Zuñiga:** “These projects aim to stimulate growth across multiple sectors. Simplifying procedures and digitizing government processes can attract foreign direct investment and improve the business environment. Investments in digital infrastructure for foreign trade will streamline import and export processes, reducing costs and enhancing competitiveness.
“Promoting entrepreneurship and enhancing employability directly impact job creation and skill development, contributing to a more vibrant and inclusive economy.”
**Can you provide a concrete example of how these investments might directly impact citizens?**
**Juan carlos Zuñiga:** “Consider the ‘Program for Simplifying and Digitizing Procedures.’ Imagine a small business owner who previously spent days navigating bureaucratic hurdles to obtain permits. This program aims to digitize these processes, making them faster and more accessible. This not only saves time and resources for the business owner but also stimulates economic activity and promotes job creation.”
### **Attracting Foreign Capital:A Global Viewpoint**
**El Salvador has seen increased interest from the diaspora and international investors. How do these projects contribute to this positive trend?**
**Juan Carlos Zuñiga**: “These investments signal stability and progress, creating a more attractive environment for both domestic and foreign investors. Investors are seeking opportunities in countries with sound economic policies, and El Salvador’s commitment to leveraging loans for impactful projects demonstrates its dedication to sustainable growth.
**”**The diversification of investment sources, including interest from Germany, the United States, and Korea, underscores the recognition of el Salvador’s economic potential on a global scale.**
### **The Road Ahead: Challenges and Opportunities**
**what are some potential challenges El Salvador might face in implementing these projects effectively?**
**Juan Carlos Zuñiga:** “Effective project management and transparent governance are crucial for ensuring successful implementation. Overcoming bureaucratic bottlenecks and ensuring timely project execution will be key. Additionally, ongoing monitoring and evaluation are
essential to measure the projects’ impact and make necessary adjustments.
**Looking ahead, what are your predictions for El Salvador’s economic outlook with these investments in place?**
**Juan Carlos Zuñiga**: “El Salvador has the potential to leverage these investments as catalysts for sustained economic growth. By creating a more attractive business environment, fostering innovation, and empowering its people, El Salvador can build a prosperous and resilient economy for the future. However, continued commitment to sound economic policies, clarity, and effective implementation will be crucial in realizing this potential.”
**Join the Discussion:**
What are your thoughts on El Salvador’s investment strategy? Share your insights in the comments below!
**Further Reading:**
* **PGR and PDDH ask for consolidation in their budgets for 2025**
* **El Salvador’s Economic Outlook: A Longer-Term Analysis**
