The Minister of Finance, Alejandro Zelaya, assured that, according to the latest IMF report, the Salvadoran economy closed 2022 with dynamism and maintained a positive growth rate for this year.

A recent report presented by the International Monetary Fund (IMF) after the review of Article IV —an evaluation that is carried out every year—revealed that El Salvador’s public finances continue to be robust, as reiterated yesterday by the Minister of Finance, Alejandro Zelaya.

“They left a series of recommendations, just like they did last year. I think this year’s report is good, considering the history of our country. We cannot say that we have a robust economy as a whole, but we are trying to develop it. We are on the right track, and this is what the Monetary Fund points out», he affirmed.

The official indicated that the report allows the entire international financial community to know first-hand how the country’s public finances are.

The multilateral mission, which visited the country between January 30 and February 8 of this year, emphasized that “the policies to strengthen growth in the medium term are key pieces of the government’s economic plan.”

The IMF also supported the projection of the Central Reserve Bank (BCR) on the country’s economic growth in 2022, which was estimated at 2.8%.

The report recognizes the tax collection strategy and the actions to combat evasion led by the Ministry of Finance, aspects that undoubtedly improve the investment climate and, therefore, the country’s access to international markets.

According to the organization, the country’s favorable results are also based on the overwhelming improvements in security, economic diversification, reduction of paperwork, and a successful tax collection strategy.

On this last point, it should be noted that tax revenues and contributions in 2022 were almost 13% more than what was collected in 2021, so in tax matters, it was a positive year.

The trend in terms of tax revenues continues this year, since a Treasury report up to February reports an interannual growth of 1.7% in the collection of taxes and contributions, equivalent to $19.4 million more. In total, $1,141.9 million is recorded.

This dynamism of the Salvadoran economy was also confirmed earlier by the former president of the Central Reserve Bank (BCR) during the FMLN administration, Carlos Acevedo, who also stressed that security is one of the positive factors of the administration of President Nayib Bukele, which has had a direct impact on the country’s investment climate.

“I think the investment climate definitely benefits from the security issue. It is not the only factor, but it is one of the most important,” added Acevedo.

Likewise, he said that the new security reality is expected to positively affect the macroeconomic fabric of the country. “Maybe by the end of the year we’ll start to see the macro performance needle start to move,” he said.

“In its last report, the IMF pointed out an effort [by El Salvador] to reduce red tape for business,” he said.

The Minister of Finance, Alejandro Zelaya, assured that, according to the latest IMF report, the Salvadoran economy closed 2022 with dynamism and maintained a positive growth rate for this year.

A recent report presented by the International Monetary Fund (IMF) after the review of Article IV —an evaluation that is carried out every year—revealed that El Salvador’s public finances continue to be robust, as reiterated yesterday by the Minister of Finance, Alejandro Zelaya.

“They left a series of recommendations, just like they did last year. I think this year’s report is good, considering the history of our country. We cannot say that we have a robust economy as a whole, but we are trying to develop it. We are on the right track, and this is what the Monetary Fund points out», he affirmed.

The official indicated that the report allows the entire international financial community to know first-hand how the country’s public finances are.

The multilateral mission, which visited the country between January 30 and February 8 of this year, emphasized that “the policies to strengthen growth in the medium term are key pieces of the government’s economic plan.”

The IMF also supported the projection of the Central Reserve Bank (BCR) on the country’s economic growth in 2022, which was estimated at 2.8%.

The report recognizes the tax collection strategy and the actions to combat evasion led by the Ministry of Finance, aspects that undoubtedly improve the investment climate and, therefore, the country’s access to international markets.

According to the organization, the country’s favorable results are also based on the overwhelming improvements in security, economic diversification, reduction of paperwork, and a successful tax collection strategy.

On this last point, it should be noted that tax revenues and contributions in 2022 were almost 13% more than what was collected in 2021, so in tax matters, it was a positive year.

The trend in terms of tax revenues continues this year, since a Treasury report up to February reports an interannual growth of 1.7% in the collection of taxes and contributions, equivalent to $19.4 million more. In total, $1,141.9 million is recorded.

This dynamism of the Salvadoran economy was also confirmed earlier by the former president of the Central Reserve Bank (BCR) during the FMLN administration, Carlos Acevedo, who also stressed that security is one of the positive factors of the administration of President Nayib Bukele, which has had a direct impact on the country’s investment climate.

“I think the investment climate definitely benefits from the security issue. It is not the only factor, but it is one of the most important,” added Acevedo.

Likewise, he said that the new security reality is expected to positively affect the macroeconomic fabric of the country. “Maybe by the end of the year we’ll start to see the macro performance needle start to move,” he said.

“In its last report, the IMF pointed out an effort [by El Salvador] to reduce red tape for business,” he said.