In a surprising announcement during a recent press conference, President Nayib Bukele revealed a new economic measure that will benefit 95% of El Salvador’s population.
The government will cover the full cost of water and electricity bills for the month of January, providing significant relief to households across the country. The subsidy will cover up to $80 in electricity and $30 in water per household, according to the President.
This initiative is expected to positively impact 1.8 million households in January. “This will benefit 95% of the population. There will be cases on the edge, such as those who spend 79 on electricity and 31 on water.
This is a measure to alleviate the family economy after year-end expenses,” Bukele explained. The subsidy also includes additional charges, and households that have already paid their bills will receive reimbursements in February, provided they meet the established limits.
Targeting Households, Excluding Businesses
The subsidy is aimed exclusively at households, excluding businesses, industries, and government entities. This measure is part of the “Plan to Recover the Economy in El Salvador”, introduced in July 2024. The first phase of the plan eliminated tariffs on food and agricultural products, while the second phase will focus on technological development.
Through these efforts, the government aims to ease the financial burden on Salvadorans and strengthen the country’s economic recovery amid global challenges.
Bukele Highlights Tech Investments in El Salvador
During the press conference, President Bukele also emphasized the growing presence of technology companies in El Salvador. He highlighted that firms like Tether, whose market value is four times El Salvador’s GDP, have chosen to relocate their main operations to the country.
According to Bukele, these companies are not just opening offices but establishing their headquarters in El Salvador, reinforcing the nation’s potential as a global technology hub.
However, Bukele acknowledged that El Salvador still needs to improve in key areas, such as training young people in technology careers and strengthening digital infrastructure. He noted that many tech companies are seeking countries with a large pool of skilled professionals in fields like programming, artificial intelligence, and hardware development.
This presents a challenge for El Salvador’s education system, but initiatives like the Aircity project, focused on chip manufacturing, and government support aim to position the country as a leader in the global tech industry.
Defending Metallic Mining
Bukele also addressed the recent approval of metallic mining in El Salvador, a decision that has faced criticism from various sectors. He defended the move, questioning why El Salvador should not engage in a practice that is common worldwide.
“I don’t see a reason why we shouldn’t do what 100% of the world does,” Bukele stated. He cited Israel as an example, a country with similar population density and water stress levels that has successfully implemented mining legislation.
According to Bukele, this demonstrates that mining can coexist with sustainable policies if properly regulated. He emphasized that economic development must go hand in hand with responsible environmental management.
A Vision for Economic and Technological Growth
President Bukele’s announcements reflect his administration’s dual focus on economic relief and technological advancement. By subsidizing essential utilities and attracting global tech companies, the government aims to improve the quality of life for Salvadorans while positioning the country as a competitive player in the global economy.
As El Salvador navigates these initiatives, the challenge will be to balance economic growth with environmental sustainability and social equity.
