El Salvador Constrained by Growth

Fitch has affirmed El Salvador at BB+ (stable) based on a stable monetary and economic environment and a good record on structural reforms, including the implementation of DR-CAFTA. The agency expects growth of 4% in 2008-2009, led by the agriculture, tourism, manufacturing, and services sectors. “Higher growth remains critical for El Salvador’s dollarized economy to keep public debt dynamics on a downward trajectory, as well as to improve social conditions and increase per capita income,” says Casey Reckman, associate director in Fitch’s sovereign group.