El Salvador stood out in 2022 due to various economic bets, among which stands out a historic tax collection that exceeded $6,145.1 million in current income and contributions, which was 11% above what was registered in 2021, in addition to exceeding its own projections of the Ministry of Finance (MH).
This is according to the report “Perspectives 2023: Central America, a region of opportunities” by the firm Exor Latam, which also highlights El Salvador’s progress in terms of sustained growth of the Gross Domestic Product (GDP), exports, and remittances, and the good panorama left after the recent payment of the debt.
“After the amortization of the ESA2023 bond, some risk indicators, such as the Emerging Markets Bond Indicator (EMBI), begin to show a positive trend for the country. For the different risk rating agencies, the state liquidity situation after the repayment of the bond will be relevant to determine an improvement in the perception of risk”, indicates the study.
With data as of November 2022, the report highlights the movement of Salvadoran exports that totaled $6,807.2 million, an additional $743 million over the same period of the previous year, an item that accompanied the increase in remittances that until the eleventh month of 2022 amounted to $6,981.7 million.
Likewise, Exor, with data from the Central Reserve Bank (BCR), reports that “16 of the 19 economic activities included in the GDP measurement are growing, and this is thanks to the focus on production. The greatest growth has occurred in the electricity sector, with 12.6%, followed by construction, with 12.5%, and recreational services, with 10.7%.
The vice president of the firm, César Addario, stressed that the countries of the region are better prepared to face the economic and fiscal challenges that will arise this year. “Although the global economic outlook will continue to pose significant challenges, Central America is better prepared to face them,” he asserted.
TAX RECOVERY IN THE REGION
In general, in Central America, the tax collection rates had different rhythms since El Salvador and Guatemala presented increases, with $6,145.1 million, an increase of 11%, and $12,109.5 million, an increase of 13.2%, respectively.
Meanwhile, Costa Rica, with an accumulation of $11,206.6 million, had a 1.6% reduction in its tax collection, and Honduras, with $5,069.5 million, reported a 3% reduction in tax collection.