[{"bbox": [86, 155, 323, 186], "category": "Section-header", "text": "2 RATIONALE"}, {"bbox": [86, 218, 234, 244], "category": "Section-header", "text": "2.1 Context"}, {"bbox": [97, 260, 1133, 368], "category": "Text", "text": "The election of Nayib Bukele as Salvadoran president in 2019 represented a break with the previous political establishment of two political parties that fought during the civil war and signed the peace agreement (1980-1992). President Bukele enjoys widespread support, resulting in the fact that his party, Nuevas Ideas, has won supermajorities in the Legislature and in local governments over the last two electoral cycles."}, {"bbox": [97, 379, 1133, 459], "category": "Text", "text": "The controversial decision of President Bukele to run for president again despite the Constitution's adherence to one-term, has heightened democratic concerns. With total control of the Legislature and the Judiciary, checks and balances have significantly weakened, as reported in the latest Risk Management Framework (RMF) of July 2023."}, {"bbox": [97, 471, 1133, 631], "category": "Text", "text": "In 2022 a state of exception was introduced to fight the notoriously violent gangs. The state of exception has been extended numerous times, and there has been a significant decrease in the high crime homicide rates making El Salvador one of the safest countries in the region, although the situation has also led to concerns about human rights. One aspect of El Salvador's democratic regression under the state of exception that has received less attention is its detrimental impact on women. In the midst of the ongoing repression, gender-based violence and gender-specific vulnerabilities have become a form of collateral damage."}, {"bbox": [97, 642, 1133, 696], "category": "Text", "text": "After the COVID pandemic, Real GDP growth rebounded to 11.2 pct in 2021, but has since gone from 2.6 in 2022 to 2.2 in 2023, and is expected to stay around 2 pct, similar to growth levels before the pandemic."}, {"bbox": [97, 708, 1133, 788], "category": "Text", "text": "As reported in the latest RMF, public finances and transparency remain issues of significant concern. Fiscal space remains limited although tax revenues have been increasing since the end of the COVID pandemic (22.3% of GDP) and the Government is making efforts to reduce fiscal evasion and elusion."}, {"bbox": [97, 800, 1133, 987], "category": "Text", "text": "Primary spending grew by 18.4 pct in 2023, There is a concern regarding debt levels that reached 75.1 pct of GDP in 2023; the Government continues to prioritize large investment projects but lacks clear financing sources. As reported in the 2023 RMF, the risk of default remains in the medium-long term if a long awaited deal with the IMF is not achieved. There is limited information on what is blocking the deal, although it appears that the government's decision to introduce bitcoin as a national currency remains controversial. That said, the introduction of bitcoin has had only limited impact on the economy (it is almost not used by Salvadorans) and on fiscal policy. The Fiscal Responsibility Law remains suspended following the COVID crisis."}, {"bbox": [97, 998, 1133, 1105], "category": "Text", "text": "The significant reduction in violence appears to have had limited impact on migration for now. Lack of opportunities push Salvadorans, in particularly youth, towards migration. Around 2 Mio Salvadorans are estimated to be in the United States, and remittances account for around 20% of GDP. Relations between El Salvador and the USA are particularly marked by this issue."}, {"bbox": [97, 1117, 1133, 1223], "category": "Text", "text": "Gender inequality and violence against women remain very high. Women suffer higher levels of underemployment and marginalization in the labour market. Civil society organizations have criticised a lack of gender perspective in government policies. Violence by security forces and gangs continues to affect disproportionately the LGBTI community and its activists."}, {"bbox": [97, 1235, 1133, 1366], "category": "Text", "text": "The digital divide in El Salvador remains deep, both across and within regions, as well in terms of income and gender. Low connectivity, limited penetration of digital infrastructure and low level of digital skills and gender gap are problems that highlight the importance of affordable access to digital services. Digitalization is an important priority for the Salvadoran Government, who aims, through its Digital Agenda, to foster digital transformation."}, {"bbox": [97, 1380, 1133, 1565], "category": "Text", "text": "El Salvador remains highly vulnerable to climate change impacts and natural disasters, including flooding and drought. The high population density has strongly affected deforestation, land degradation and water scarcity. El Salvador's share of global greenhouse emissions is 0.03%, dominated by emissions from the energy sector (transportation and other fuel combustion, as well as agriculture). The country has potential to further diversify its energy mix towards sustainable energy sources (in particular solar and geothermal energy). El Salvador's second set of NDCs were approved in 2022, with a focus on mitigation and adaptation through renewable energies, land conservation and restoration."}, {"bbox": [1038, 1682, 1142, 1706], "category": "Page-footer", "text": "Page 4 of 11"}]