5.2 C

Inflation and Oil Prices, Biggest Challenges for Exporters



The union hopes the sector will take advantage of US foreign investment mobilized from Asia to the continent.  /DEM

The union hopes the sector will take advantage of US foreign investment mobilized from Asia to the continent. /DEM

Persistent high levels of inflation in El Salvador in early 2023, along with ever-changing oil prices, will be one of the biggest challenges exporters will have to face this year, according to the Exporters Association. El Salvador (joint export). .

The union’s secretary-general, Silvia Cuellar, underscored that inflation in 2022 has affected the sector by raising input costs, thus hurting final consumers.

By February 2023, inflation had already started to fall and was above 6%, but food prices continue to rise, doubling the prevailing inflation rate.

Oil prices also affect freight costs, and as black gold rises, so do shipping costs for businesses.

Cuéllar pointed out that what happens in the US would be transcendent for the Salvadoran economy, as well as the continuity and intensity of the war between Russia and Ukraine.

“There are so many considerations that it won’t be as good a year as 2022, so let’s hope we grow at least on the same level. On the same level,” he stressed.

Prior to the release of trade data produced by the country in January 2023, Coexport had predicted that the country would not record high levels of exports this year and would continue the trend reflected through 2022. .




Cuéllar explained that 2020 meant the year of export losses, and things changed in 2021, dubbed the year of recovery.

In 2022, the country followed a growth trend, but executives said it was a year of “leveling out” and closed with more than $7.115 billion in sales.

The trend dropped in January last year, when the country exported $522.2 million, down 9.7% from the same period in 2022.

The union has assured that by 2023, 90% of businesses will already have recovered from the damage of the pandemic. However, he admitted that some have closed in recent years, while others have not made their planned investments.

things that grow

A union spokeswoman indicated last month that some items such as textiles, clothing and household items could be affected by what happened in the United States. He added that it could take a leap and grow by up to 20%.

He said the mobilization of U.S. companies from Asia to the Americas (nearshoring) and chip exports, a booming commodity for El Salvador since exporting $259 million in 2022, has led the country to grow. Guaranteed to be available.

The Corporation hopes to visualize the implementation of franchises that will help export the brands and distinctive inputs that companies use.

Source: Diario.Elmundo

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