The risk rating agency Moody’s Investors Service reported that the fight against gangs carried out by the government of El Salvador will eventually boost the country’s economy, attracting investment companies that are regaining confidence.
Moody’s highlighted that crime has decreased in the country and that this situation leads companies to boost investment.
«If the security situation translates into more investment, that could certainly be a game changer for the economy,» the rating agency explained.
In the Bloomberg article, which takes up the information released by Moody’s, it is highlighted that El Salvador used to be in the past among the most violent countries in the world, but given the reduction in violence, they pointed out that among the most benefited are the retail, tourism, and banking sectors.
«There is anecdotal evidence that crime has decreased in the Central American nation,» said Moody’s analyst Jaime Reusche, «which could encourage local companies to boost investment,» the article concludes.
Moody’s reported that El Salvador’s economic growth rate is projected to be 1.7% this year, «before accelerating to its full potential rate of around 2.5%.»
The Territorial Control Plan (PCT) and the Exception Regime are two of the strategies that the government of President Nayib Bukele continues to implement to maintain the country with one of the lowest homicide rates in the world—less than two violent deaths for every 100 thousand inhabitants, according to official records for this year.
To date, these same measures, in addition to the security fences applied in some municipalities that for years were controlled by gangs, have allowed the capture of more than 64,000 terrorists and, as a consequence, have returned peace of mind and confidence to the population and businessmen who are investing again in the country.