Bukele targets Catalonia to turn El Salvador into 'new Singapore'

The Bukele administration has focused on Catalonia to attract investment and expertise aimed at transforming El Salvador into the "new Singapore," according to recent reports. The initiative seeks to replicate the rapid economic rise of the Asian city-state.

The presidential office in El Salvador has prioritized Catalonia. The stated goal is to draw capital and talent to convert the Central American nation into the "new Singapore," as reported by **La Veu Lliure**. This comparison is not new in the rhetoric of **Nayib Bukele**'s government, which has long promoted the country as a low-cost destination with streamlined procedures.

## What Bukele seeks in Catalonia

The choice of Catalonia is no accident. Barcelona hosts an ecosystem of tech companies and international investment funds. The Salvadoran government aims to bring that capital and knowledge to its territory. The concept involves Catalan firms using El Salvador as a platform for operations in Central America while generating local employment.

Official Salvadoran discourse has consistently emphasized legal certainty and low taxation as key incentives. The reference to Singapore serves as a mirror: a small country without natural resources that transitioned from poverty to high income within decades thanks to trade openness and an effective state.

## The Singapore model and its limits

Singapore has **5.9 million inhabitants** and a per capita GDP hovering around **82,000 dollars** (2023, World Bank). El Salvador has **6.3 million** inhabitants and a per capita GDP of approximately **5,300 dollars**. The gap is enormous and cannot be closed with slogans.

The Asian nation built its miracle on strong institutions, education, and a professional bureaucracy. El Salvador starts from a fragile fiscal base and an economy heavily dependent on remittances, which exceeded **8 billion dollars** in **2023**, accounting for nearly a quarter of GDP. Without deep reforms, the "new Singapore" remains merely a brand.

## Why the Catalan operation matters

The move has political implications. Bukele seeks international legitimacy and a modernization narrative to counter criticism of his state of exception regime. Attracting European investment helps project stability.

For Catalonia, this represents an opportunity to internationalize its productive sector. It also carries risks if the Salvadoran legal framework fails to provide promised guarantees. Any investment decision should be accompanied by independent legal and financial advice.