El Salvador Government Analytics

Government stability and policy metrics

Government Debt

59.1%

Government debt as percentage of GDP

Corruption Index

31.0

Corruption perception index (higher is better)

Government Payrolls

No data

Number of government employees

Gold Reserves

1 t

National gold reserves in tonnes

Corruption Index

Corruption perception index (higher is better)

Gold Reserves

National gold reserves in tonnes

Additional Insights

Expert analysis of El Salvador Government trends and investment implications

Market Overview

El Salvador presents a mixed investment landscape with fiscal challenges and potential political risks. The static corruption index of 31 suggests ongoing concerns about governance and property rights enforcement, which could influence real estate stability. Gold reserves remain low, offering limited economic shock buffer, thereby increasing reliance on external factors for economic resilience.

Key Findings

Data-driven insights

•The corruption index stands at 31 with no change, indicating persistent governance issues impacting property rights and regulatory predictability.
•Gold reserves at 1.37 tonnes have not increased, suggesting limited capacity to cushion against economic downturns.
•High debt-to-GDP ratios suggest potential future tax increases which could impact property investment returns.
•A large government payroll indicates a potential for high tax burdens, affecting both investment attractiveness and economic competitiveness.

Market Trends

Historical patterns

•Stagnant corruption index implies no significant anti-corruption improvements, impacting investor confidence.
•Unchanged gold reserves highlight a lack of proactive measures to strengthen economic resilience.
•The potential for fiscal instability due to high debt levels, suggesting a risk of increased taxation or austerity measures.

For Investors

Actionable takeaways

•Consider diversifying investments to include regions with stronger property rights and lower corruption risk.
•Monitor fiscal policies closely, as high debt levels could lead to increased taxation affecting returns.
•Evaluate the potential for currency risk, given limited gold reserves as a buffer against economic volatility.
•Factor in potential regulatory unpredictability when assessing long-term property investments in the region.

Market Context

El Salvador's governance landscape is characterized by ongoing corruption challenges and fiscal constraints, necessitating careful risk assessment for potential investors. The country's limited economic shock absorbers further emphasize the need for strategic investment planning.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.