The administration of President Nayib Bukele is poised to conclude its quinquennium with a staggering $12.7 billion in private investment, both domestic and foreign, as announced by Secretary of Commerce and Investments, Miguel Kattan.
From the latter half of 2019 through the first quarter of 2024, the Presidential department has tallied $12.5 billion in investments. However, it is anticipated that the capital from additional projects will bolster this figure by the end of the current quarter.
Kattan expressed that achieving these figures was once deemed «unthinkable» under previous administrations due to concerns over security and profitability. However, with improved safety conditions, there is now increased confidence and positive expectations for the nation’s future.
«The most crucial aspect is witnessing the steadily rising confidence among both local and international entrepreneurs regarding the developments in El Salvador […] These positive figures persist despite the challenges faced during this quinquennium, including the COVID-19 crisis, container crises, and the conflict between Russia and Ukraine, all of which have affected investment processes and economic growth worldwide,» remarked Kattan.
According to recent data from the Central Reserve Bank (BCR), foreign direct investment (FDI) in 2023 surpassed $759 million, quadrupling the figures from 2022, which stood at $170.85 million.
Furthermore, Kattan highlighted that last year, local entrepreneurs reinvested nearly $800 million of their profits within the country, demonstrating their confidence in the sector.
«This is unprecedented and crucial as it showcases the confidence of the business community,» Kattan emphasized.
The official also mentioned several projects, such as the $100 million investment in the logistics park by Honduran real estate company Inhdelva, the construction of new shopping centers like Plaza Mundo Usulután and Plaza Mundo Apopa, Las Ramblas, and Grupo Bimbo’s industrial investment, totaling over $200 million, among others.
«There’s a clear influx of Central American investors seeking the security we offer, a feature not present in other regional countries. Moreover, we’re seeing entrepreneurs from Chile, Peru, Brazil, France, Italy, Spain, and England seeking an entry point into the Americas,» he noted.
With the favorable conditions marking the beginning of the new governmental term, authorities anticipate tripling the total private investment recorded in the first quinquennium.
«These $12.7 billion we are set to achieve in President Bukele’s initial term, compared to what lies ahead in the second quinquennium, will be like a drop in the ocean. I am confident that in this new term, we will achieve double or triple of what we accomplished in the first,» affirmed Kattan.
Furthermore, Kattan underscored the country’s economic growth during Bukele’s administration, surpassing expectations and projections of international organizations annually.
«It’s important to note that economic growth in El Salvador has exceeded expectations. In 2023, for instance, growth reached 3.5%, driven by enhanced security measures and a surge in sectors such as tourism, construction, pharmaceuticals, and commerce,» he concluded.