In 2023, El Salvador’s economy experienced significant advancement, with a 3.5% increase, outperforming the previous year’s 2.8% uplift.
This progression, surpassing the 30-year norm of 2.1%, reflects the country’s economic resilience and forward momentum despite worldwide challenges.
Enhanced performance was evident in 17 out of 19 sectors, underscoring a widespread recovery.
The construction sector led this leap with a 22.8% increase, followed by the electricity sector at 16.8% and professional services at 11.4%.
A vigorous construction field, diversification in the energy sector, and steady service sector enhancements fueled these strides.
Moreover, El Salvador’s hosting of major sports events in 2023 elevated its profile on the global stage, bolstering tourism and stimulating demand for local goods and services.
The Central Bank of El Salvador (BCR) anticipates continued economic vigor into 2024, forecasting an economic upturn between 3% and 3.5%.
This positive outlook is anchored in ongoing investments and the country’s appeal as a venue for future international gatherings.
Looking at the broader context, the World Bank highlights a stable pattern of economic improvement from 2013 to 2019, with a yearly rate of 2.5%.
Despite a significant downturn of -7.9% in 2020 owing to the COVID-19 pandemic, the nation made a remarkable recovery with an 11.2% increase in 2021.
Although this pace decelerated to 2.6% in 2022, an approximate 2.8% upswing is expected in 2023.
El Salvador is now tasked with fiscal reforms to manage its public debt, which escalated beyond 90% of GDP following pandemic relief measures.
Nevertheless, the prospects for enduring, inclusive progress are strong, supported by strategic investments in human resources, improved social support mechanisms, and a dynamic business landscape.