El Salvador majority to ease external funding access
Wednesday, March 31, 2021
Significance
The five seats obtained by its allies, the Gran Alianza por la Unidad Nacional (Grand Alliance for National Unity) will cement the majority further. This concentration of power will improve the government’s ability to implement policies, but may jeopardise El Salvador's separation of powers and political checks and balances.
Impacts
- Concerns about democratic and media freedoms may increase as Bukele strengthens his position.
- Prices will pick up this year, fuelled by recovering demand, higher oil prices and low interest rates.
- Remittances will remain resilient on the back of US economic recovery, supporting strengthening private consumption.