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 exhibits significant investment risks due to a corruption index of 31 and a static gold reserve of 1.37 tonnes, indicating limited economic buffers. However, potential fiscal instability arises from a high debt-to-GDP ratio, suggesting possible tax increases that could impact property investments. Investors should weigh these factors alongside the country's political landscape when considering long-term commitments.

Key Findings

Data-driven insights

•The corruption index stands at 31, indicating high corruption levels, which can undermine property rights and enforcement.
•Gold reserves remain at 1.37 tonnes with no recent increase, offering minimal protection against economic shocks.
•A high debt-to-GDP ratio suggests potential for increased taxation, affecting property investment returns.
•Government size and payrolls may imply a high tax burden, potentially impacting economic competitiveness.

Market Trends

Historical patterns

•The corruption perception remains unchanged, indicating persistent governance challenges.
•Static gold reserves suggest a lack of strategic economic buffering improvements.
•No fiscal improvements noted, maintaining high future tax increase risk.

For Investors

Actionable takeaways

•Consider diversification to mitigate risks associated with potential tax hikes and regulatory unpredictability.
•Prioritize investments in jurisdictions with stronger property rights enforcement to reduce exposure to corruption-related risks.
•Monitor government fiscal policies closely for signs of increased taxation that could affect returns.
•Evaluate opportunities in sectors or areas less impacted by government fiscal policies to balance risk.

Market Context

El Salvador's governance landscape is characterized by high levels of corruption and limited economic resilience. Investors must navigate a complex environment where fiscal policies and political stability play critical roles in shaping property market dynamics.

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