El Salvador Economic Outlook June 14, 2022 The economy should have lost some steam in the opening quarter of the year. However, activity gathered pace in the tail end of the period. GDP expanded at a four-month quick pace in March on the back of firm expansions in the construction, real estate and financial services sectors. Less positively, activity in the industrial sector contracted year on year. Furthermore, household spending was likely hampered by a notable pickup in inflation amid pricier commodities due to the war in Ukraine. Softening domestic demand is further hinted at by moderating merchandise import growth in the quarter. Turning to the second quarter, domestic demand is expected to have cooled further. Despite easing slightly in April, inflation remained elevated and will have weighed on private consumption. Furthermore, rising core inflation points to more persistent price pressures. El Salvador Economic Growth The fallout from the war in Ukraine and a tougher base of comparison will see the economy expand at a softer clip this year. Elevated inflation will dent household spending, although the rollback of Covid-19 restrictions and solid remittance inflows should support domestic demand. However, heightened debt and fiscal sustainability concerns pose risks. Our panelists see GDP expanding 2.3% in 2022, which is unchanged from last month’s forecast, and 2.0% in 2023.
Tsk tsk, really deaddog, where's your data for that claim? The Bloomberg article was the announcement news in July, Bukele announced they completed the first round of bond purchase last month
deaddog, that's forecast, who knows if that growth in El Salvador GDP will be correct. Are you trying to pull one over us? Or you don't have the intelligence to produce data to dispute the double digit GDP growth last year for El Salvador? How about all the other metrics? Do better, deaddog, don't be gullible and believe your ratings agency the same one who told you to buy triple A rated bonds of financial companies, AIG, CITI, BofA etc etc, all of them went below $1 as they became insolvent due to their toxic assets
The downsides of Bitcoin adoption The biggest downside of El Salvador’s Bitcoin adoption has been macroeconomic factors that have led to a decline in BTC price along with the amount of pushback it has gotten from around the world. The pushback wouldn’t matter in a bull market, but being a small nation-state with financial challenges, the country cannot afford to be on bad terms with international monetary organizations. Right now, the vast majority of El Salvador’s Bitcoin was purchased at a higher value than it currently enjoys. Bitcoin has been tracking closely with traditional assets, like the stock market — particularly tech stocks. They, too, have taken a beating this year as the world tries to cope with the aftermath of pandemic-related government handouts. Beyond the price of Bitcoin, the bigger problem for El Salvador is how the international financial world views the move. The country’s move toward Bitcoin has limited the country’s access to traditional financial markets, causing Bukele some real problems in financing the repayment of its bond obligations. Moody’s, earlier this year, credited disagreements about Bitcoin as a reason El Salvador was having difficulty coming to terms with the IMF.
Last 2 posts from you are opinion pieces Who's being gullible now, deaddog? Hard numbers were presented and you come back with opinion pieces. I thought you were going to dispute those concrete numbers By the way, it's not difficult to calculate the $ loss, you simply multiply the number of btc's El Salvador has purchased You can even use the all time high price of $69K and come back and tell us what that whopping number is, lol For reference, El Salvador Western Union remittance costs are $400M a year and reduced to $0 if using Chivo wallet transfer and the lightning network, $ in, $ out
From your article. The country is approaching its one-year anniversary of adopting Bitcoin as legal tender, a move that -- along with a shake-up in the top courts -- stoked some uncertainty among both credit rating agencies and money managers. El Salvador is one of the emerging-market nations most vulnerable to a default, according to a Bloomberg Intelligence analysis earlier this month.
You have not disputed any of the metrics, deaddog. Do you need more time? You're been doing smokes and mirrors but facts and numbers are not for your interpretation Double digit GDP growth for El Salvador Bond repurchase of over $500M (so far) El Salvador tax revenues up 2.7pp of GDP: like a sizable tax reform. Without doing tax hikes And other metrics from the picture below