Aperio Intelligence reposted this
#Bukele: how to translate the country’s improved security situation into economic growth? Much has been written in recent years about #NayibBukele and his success in bringing crime under control in one of the poorest and (until 2019) most violent countries worldwide. This decrease has understandably so led to high levels of popularity for Bukele’s government with the El Salvadoran electorate. Despite a second consecutive term being prohibited by the constitution, in February 2024, he won with 84.6% of the vote and, in June 2024, Bukele was sworn in for a second five-year term promising to translate the country’s improved security situation into economic growth. The security situation and Bukele’s pro-business rhetoric has led some international companies to consider joint ventures with local partners. The risk that we have foreseen for international players in #ElSalvador is finding yourself with a business partner that it has been the target of public criticism from Bukele and his supporters. During his presidency, Bukele has confronted and publicly critised the so-called ruling #elite, launching politically-motivated investigations against them and. After his landslide victory in 2024, he will likely continue to publicly portray these families as the enemies of the people (and in some scenarios potentially seize their assets), especially if he fails to secure financial assistance from the #InternationalMonetaryFund and is unable to pay the country’s debt in the coming months or years. There is always a degree of uncertainty when entering emerging markets and companies should not be fooled by Bukele’s popularity or his rhetoric on social media, El Salvador won’t become Singapore overnight and companies should assess potential risks and uncertainties. Aperio Intelligence
