On Tuesday within the interview of Encuentro with Julio Villagrán, the economist Rafael Lemus expressed that the federal government of the Nuevas Ideas celebration invests solely 40% of the cash it borrows, with this the ruling authorities has elevated the unhealthy debt to the Debt level of the University of El Salvador, PNC rents, and financing suppliers complete as much as $1,000 million.
“The cash fund in 2022 was very clear and we emphasised it once more in 2023 that the nation is in a debt disaster which signifies that its debt is growing and it can not pay… This is a authorities with no cash. the federal government that has introduced the monetary state of affairs to disaster, the discuss of not splitting one cent is the present state of presidency” Lemus stated.
The economist expressed that the monetary state of affairs in El Salvador is chaotic, with the amassed debt having a deficit ratio of 5 factors in relation to GDP, the place bills exceed earnings, equal to 1.5 billion {dollars}, much more than this determine.
“On the monetary aspect, it disrupted monetary administration, led us to quite a lot of debt and there was a rise in earnings, now there’s a debt drawback and a deficit drawback” stated the economist
Regarding the rise within the value of meals, on common it exceeded 25% from 2022 to 2024, which brought on a rise in poverty on this five-year interval.
“In addition to this improve in costs and the truth that the demand is dominated, the businesses, what do they do, they carry the identical product to the market however cut back their quantity, in order to not improve the worth, give much less … a part of the economic system, what this authorities discovered was deteriorating” stated Rafael Lemus