United States: El Salvador offers a panorama of opportunities in the investment climate of 2024

The U.S. Department of State recently published its report “Investment Climate Statements 2024: El Salvador,” highlighting both the strengths and challenges of the Salvadoran economy under the leadership of President Nayib Bukele. With a clear focus on attracting new investment, improving security, and taking advantage of trade agreements, El Salvador is moving in the right direction, according to the report.

Among the advantages noted by the State Department are the use of the dollar as the legal currency, facilitating trade, and improvements in citizen and legal security; in addition to the proximity to the U.S. market, a favorable business environment, and the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

The Bukele administration prioritizes job creation and economic strengthening by simplifying regulations, eliminating bureaucracy, and providing tax incentives. These efforts are reflected in GDP growth of 3.5% in 2023, a marked improvement over the previous year’s 2.8%.

Thanks to the strategic location, in the heart of Central America, and proximity to the U.S. market as a competitive advantage, El Salvador benefits greatly from regional integration, facilitating trade through Guatemalan and Honduran ports.

In terms of digitalization and technological development, the government has prioritized digital transformation, passed laws that promote innovation and technology, and eliminated tariffs and taxes for 15 years. An agreement with Google to support the country’s modernization in health, education, and government, and the opening of its first office in Central America in San Salvador, are signs of the growing interest and opportunities in the technology sector.

El Salvador is positioning itself as an attractive investment destination. Invest in El Salvador is committed to supporting and facilitating this process, opening doors to a prosperous future full of opportunities.

Find the full report here: https://www.state.gov/reports/2024-investment-climate-statements/el-salvador/