Business Dynamics: El Salvador

April 2023

This report assesses the business environment in El Salvador, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Commodities: Insights on key sectors directly related to the environmental commodities of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and commodities trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Business Dynamics: El Salvador


Chart 1 Operational and Legal Environment Key Indicators
Chart 2 Index of Economic Freedom Ranking by Pillar in El Salvador and Regional Comparison 2022
Chart 3 Index of Economic Freedom Ranking 2017-2022
Chart 4 Index of Economic Freedom: Judicial Effectiveness Pillar Rank in El Salvador and Regional Comparison 2017-2022
Chart 5 Index of Economic Freedom: Government Integrity Pillar Rank in El Salvador and Regional Comparison 2017-2022
Chart 6 Corruption Perceptions Ranking: El Salvador and Regional Comparison 2017-2022
Chart 7 Key Financial and Investment Indicators
Chart 8 Index of Economic Freedom: Property Rights Pillar Rank in El Salvador and Regional Comparison 2017-2022
Chart 9 Bank Claims on the Private Sector as % of GDP 2017-2022
Chart 10 Bank Nonperforming Loans to Total Gross Loans 2017-2022
Chart 11 Key Skills and Labour Indicators
Chart 12 Population Aged 15+ with Higher Education 2017-2022
Chart 13 Education Indicators 2022
Chart 14 Number of University Graduates by Programme 2022
Chart 15 Employment by Age 2022
Chart 16 Employment by Gender 2022
Chart 17 Youth Unemployment Rate 2017-2022
Chart 18 Labour Structure Change 2017-2022
Chart 19 Labour Structure Comparison 2022
Chart 20 Self Employed as % of Total Employed Population 2022
Chart 21 Index of Economic Freedom: Labour Pillar Rank in El Salvador and Regional Comparison 2017-2022
Chart 22 Wage per Hour in Manufacturing Sector 2017-2022
Chart 23 Labour Market Regulations in El Salvador and Regional Comparison 2022
Chart 24 Key Infrastructure Indicators
Chart 25 Index of Economic Freedom: Trade Freedom Pillar Rank in El Salvador and Regional Comparison 2017-2022
Chart 26 The Top Four Largest El Salvador’s Export Categories 2017-2022
Chart 27 Transportation Mode Indicators in El Salvador and Regional Comparison
Chart 28 Road Infrastructure 2022
Chart 29 Innovation and Digitalisation Key Indicators
Chart 30 Network Readiness Ranking by Pillar in El Salvador and Regional Comparison 2022
Chart 31 Network Readiness Ranking for El Salvador and Regional Comparison 2019-2022
Chart 32 Network Readiness Ranking: Technology Pillar for El Salvador and Regional Comparison 2019-2022
Chart 33 Intellectual Property: El Salvador Compared to Selected Regional Peers 2022
The 2022 Index of Economic Freedom
The Network Readiness Index (NRI) 2022

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