National politics have traditionally been dominated by two main political parties: the left-leaning Farabundo Martí National Liberation Front (FMLN) and the right-of-center National Republican Alliance (ARENA). However, they have become increasingly fragmented since Nayib Bukele's landslide election win in 2019 and the legislative victory of his new party, Nuevas Ideas, in March 2021. Bukele's Nuevas Ideas is a new party that constitutes an electoral platform designed for the legislative elections of 2021. In the presidential elections of 2019, Bukele was the candidate of GANA, a conservative party of the right.

Relations between the current administration and the major parties, FMLN, GANA, and ARENA, are polarised and are likely to remain so for the foreseeable future. The opposition frequently obstructs the passage of bills that the Bukele administration proposes. However, the recent victory of Nuevas Ideas in the legislative elections will give Bukele the control of the Parliament, and therefore he will be able to pass all the reforms and acts designed by the Government. Moreover, the absolute majority in the Parliament allows Bukele to appoint the judges of the Supreme Court and the general prosecutor, given him extraordinary power over the country. The extent to which Bukele is going to use this extraordinary power in the pursuit of further democracy is not clear, as he has already shown an increasingly authoritarian tendency. In spite of this potential authoritarian ruling, he will use his powers to promote foreign investment and he presumably is going to increase legal certainty for investors. Nayib Bukele himself has been manager of a company, and his policies have been business-friendly. 

The political situation has notably deteriorated due to the COVID-19 pandemic. The opposition within the Legislative Assembly has contested several strict containment measures enacted by the executive branch, while Bukele has maintained an intransigent approach, particularly when considering de-escalating confinement measures. Bukele’s capricious policymaking tendencies and increased polarisation will remain a source of heightened political instability.

The anti-corruption drive has strong popular support due to widespread disillusionment with the political class and corruption allegations involving high-ranking politicians such as former presidents Elías Antonio Saca (2004-09) and Mauricio Funes (2009-14). This paved the way for self-described political outsider Bukele to win the presidency. While Bukele pledged to prioritize the anti-corruption agenda during his administration, his efforts have so far fallen short of expectations. Bukele’s landmark anti-corruption policy is the International Commission against Impunity in El Salvador (CICIES - CICIG), that was launched in September 2019 with the main objective of providing technical assistance to the Attorney General's Office in regards to corruption investigations – CICIES has not led to a significant anti-corruption crackdown or investigations. As such, widespread corruption will remain a pressing issue.

El Salvador is considered a Flawed Democracy in the 2020 Democracy Index, developed by The Economist Intelligence Unit (EIU), where the country ranks 72 out of 167 countries scored.

The country ranks 124 at the 2020 Human Development Index developed by the United Nations Development Programme.

Companies operating in El Salvador are likely to face operational challenges including corruption, cumbersome bureaucratic processes, labour activism and the judiciary’s lack of independence. Due to ongoing government fiscal issues, firms with state service contracts also face occasional payment delays, especially at the municipal level. A lack of adequate transport infrastructure and a shortage of skilled labor further hinder the country’s competitiveness. However, the government’s attitude to foreign direct investment remains broadly positive, with successive governments committed to business-related regulatory changes and fiscal reform. One of the most important reforms taken by President Bukele has been the introduction of bitcoin as a legal currency, as an attempt to make El Salvador a pioneer country in the virtual currency industry. 

In theory, land borders with Guatemala and Honduras are open 24/7, but border crossings have been known to close without warning, especially after nightfall. Whenever possible, plan to cross land borders during the day. Road conditions are generally poor, with the exception of the main highways to provincial capitals and the Pan-American Highway, which runs east-west through the country from Guatemala to Honduras. Despite damage caused by natural disasters, improvements to road infrastructure are likely as part of government efforts to promote the country as a regional transport hub. Avoid traveling alone and never use long-distance or city buses (see Security Outlook below).

Overall, El Salvador ranks 91 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 104 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

Persistently high levels of poverty and social marginalization, and the prevalence of firearms following the civil war, meaning that levels of violent crime remain high (one of the highest in the world), especially in the capital San Salvador. Street crime remains the main security risk to foreign business personnel. Criminal gangs operate throughout the country, mainly the Mara Salvatrucha (MS-13) and 18th Street gangs, and are the main drivers of murders, extortions, and kidnappings. Extortion remains the largest revenue stream for gangs, targeting businesses and individuals throughout the country. In the capital, San Salvador, risks include extortion, petty crimes, robberies, and armed assaults, concentrated in the city center and Colonia Centroamérica; Colonia Escalon and Santa Rosa have several recent reports of thieves targeting restaurant patrons.

Bukele's USD575.2-million Territorial Control Plan targets gang territorial controls, operations, and financing in a bid to tackle El Salvador's violent crime environment. El Salvador reported a 28.7% reduction in homicides to 36 per 100,000 inhabitants in 2019, or 2,383 in total, compared with 3,346 violent deaths recorded in 2018, with a particularly marked decrease after Bukele took office. While murder rates have continued to consistently decline since 2016, the public security environment remains challenging due to local gangs' (such as the 18th Street Gang, Barrio 18, and the Mara Salvatrucha, MS-13) ongoing control of territories. Accusations of extra-judicial killings and human rights violations remain an issue. 

Protest risks are mitigated by the coronavirus disease 2019 (COVID-19)-virus-related security controls severely restricting public movements. However, protest size and frequency is much smaller than in neighboring states. Issues most likely to provoke demonstrations, concentrated in San Salvador, include water distribution and the distribution of food and salary supplements during the COVID-19 pandemic. Participants would include public-sector workers, local community groups, and transport-sector employees. Demonstrations are typically under a day and largely peaceful with low damage risks to property and installations following a route along with Juan Pablo II to the Legislative Assembly and the Government Centre in San Salvador.

Ongoing disputes with Honduras and Nicaragua over border demarcations in the Gulf of Fonseca are unlikely to result in military escalation. El Salvador has implemented a temporary 72-hour stay limit for foreign vehicles as a coronavirus disease 2019 (COVID-19)-virus-related containment measure, but this is unlikely to impact diplomatic or security relationships with its neighbors. El Salvador has tasked its military with public security and prison deployments to combat high levels of violence perpetrated by gangs over the past decade. The use of military forces to counter gangs and trafficking organizations is highly likely to continue in the 12-month outlook.

There are no known terrorist groups in El Salvador with the intention or ability to undertake terrorist attacks against commercial, military, or government-owned assets. However, street gangs (maras) are classified as terrorist organizations under domestic law. Gangs are able to target security forces and private-sector businesses with firearms in violent hot spots like San Salvador. Violent gang-led campaigns against security forces in 2019 resulted in the murder of at least 17 soldiers and 25 police personnel. Some members of Congress have proposed constitutional changes to allow the death penalty for gang homicides.

Overall, El Salvador ranks 113 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

El Salvador is not currently among the most cyber-attacked countries in the world according to Kaspersky cyber threat map.

Yellow fever: There is no risk of contracting yellow fever in El Salvador. However, the government requires proof of vaccination for travelers arriving from countries with a risk of yellow fever transmission. A single dose of YF vaccine is sufficient to confer sustained life-long immunity against the disease.

El Salvador ranks 65 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).

The climate is tropical along the coast, semi-tropical on the central plateau, and temperate in mountainous areas. During the dry season (November to April), the air is hot and dry. From May until October, it rains almost every day and there is the risk of hurricanes. Temperatures are relatively steady throughout the day along the Pacific coast all year long (from 25°C to 29°C). Temperatures are cooler at higher elevations: along the plateau, the average temperature is 23°C; in the mountains temperatures range between 12°C and 23°C, sometimes dropping down to 0°C.

El Salvador is vulnerable to natural disasters, especially due to seismic activity.

Earthquakes occur frequently, sometimes causing sizeable material damage. Offshore earthquakes have the potential to trigger tsunamis that can threaten coastal areas. A powerful earthquake measuring 7.2 on the Richter scale struck off the coast of El Salvador in November 2016. However, no casualties or material damage were reported and no tsunami was generated. Two other earthquakes with magnitudes 7 or above also hit in 2001 and 1986, causing significant damage. 

The country is also home to some 20 volcanoes, three of which (San Miguel/Chaparrastique, Santa Ana, and Izalco) occasionally show signs of activity. The last major eruption in the country occurred in 2014.

El Salvador's rainy season lasts from May/June to October/November; during this period, flooding can occur, along with landslides in hilly or mountainous areas. This coincides with the Atlantic and Pacific Hurricane seasons (June to November); while the country is relatively rarely hit directly by hurricanes and tropical storms, their remnants often bring potentially hazardous torrential rains. The US-based National Hurricane Center closely tracks all cyclonic activity in Central America. 

Information, alerts, and recommendations regarding natural disasters are available (in Spanish) at the government's Civil Protection agency website or  CEPREDENAC for all Central America.