El Salvador's Economy Grew 4.8% in the First Quarter of 2026

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El Salvador's Gross Domestic Product (GDP) registered a growth of 4.8% during the first quarter of 2026 compared to the first quarter of 2025. In monetary terms, GDP reached US$9,261.8 million, representing an increase of US$604.7 million compared to the same period the previous year, reflecting an expansion of national productive activity.

The economic growth of the first quarter of 2026 exceeds by more than double the average growth rate of the first quarters of the last 17 years (2.2%). This result was backed by growth in most productive activities, as, according to the production approach, 17 of the 19 economic activities registered positive variations and together represented 80.3% of GDP.

Among the activities with the greatest dynamism, Construction (13.5%), Mining and quarries (11.1%), Transport and storage (7.6%), and Hotels and restaurants (7.1%) stood out. Likewise, other activities that showed growth were Health (5.5%), Professional and technical services (5.4%), Recreation (4.7%), Industry (4.4%), Administrative and support services to businesses (3.6%), Commerce (3.4%), Real estate activities (3.4%), Financial (3.3%), Information and communications (2.7%), Government services (2.5%), Electricity (1.6%), Personal services (1.2%), and Water (0.6%); in contrast, Education (-0.3%) and Agricultural (-0.8%) activities registered slight contractions and represented 6.7% of GDP in monetary values.

In an international context characterized by uncertainty and pressures on the global economy, the performance of the Salvadoran economy was driven mainly by favorable internal factors and greater foreign trade.

Among the internal factors, policies aimed at stimulating investment, the execution of strategic projects, and measures directed at strengthening the disposable income of households stand out, such as the implementation of the 25th Fortnight Law promoted by the President of the Republic, Nayib Bukele. These elements contributed to sustaining internal demand and dynamizing various productive sectors.

Investment, both public and private, played a central role in this growth, particularly through the Construction sector, which consolidated as one of the main engines of the economy. Private investment was oriented towards the development of residential, commercial, and logistical projects, while public investment boosted the construction and modernization of educational, road, and airport infrastructure, highlighting strategic projects such as the Pacific International Airport. This dynamism generated important multiplier effects on other activities, strengthening productive linkages.

Growth was also supported by improvements in the country's logistical infrastructure. The San Óscar Arnulfo Romero and Galdámez International Airport strengthened the quality of its services, while investments in the Port of Acajutla optimized efficiency in cargo handling, facilitating foreign trade and connectivity.

In this context, the external sector showed favorable behavior. Exports of goods and services grew 5.0% in monetary terms, driven by the dynamism of industrial and traditional products, as well as by the growth of services. Tourism consolidated as a key pillar of growth, with the arrival of 1.3 million international visitors, who were a source of income for the country, given the purchase of goods and services during their stay. This performance was driven by improved security conditions, international promotion, and the holding of large-scale events.

These events, including musical shows and cultural and sports activities, such as Shakira's residency in the country, a musical event that attracted many spectators of different nationalities, not only dynamized the entertainment sector but also generated positive effects for tourism, commerce, transport, and other services, amplifying the economic impact transversally.

The strengthening of public services, which has been a priority in the management of President Nayib Bukele, also contributed to this growth. Advances in the health system, supported by the implementation of the National Hospital Network and the use of digital tools like DoctorSV, expanded coverage and improved the quality of care. In the educational field, the delivery of school packages and technological devices favored access to education and reduced the digital gap, positively influencing the development of human capital.

For its part, the strengthening of internal demand was associated with the increase in household incomes. In addition to the implementation of the 25th Fortnight Law, the growth of family remittances, which increased by 7.3%, reaching US$2,435.6 million in the first quarter of 2026, added to this. This flow of income contributed to stimulating private consumption, favoring the performance of sectors such as commerce, restaurants, transport, and entertainment.

As a result, an expansion of internal consumption was observed, driven by both the greater purchasing power of households and the increase in the flow of international visitors. This dynamism allowed strengthening economic activity, generating multiplier effects.

Together, the performance of the first quarter of 2026 reflects multisectoral economic growth, sustained by the interaction of investment, consumption, the external sector, and tourism. The convergence of these factors has allowed dynamizing various productive sectors, strengthening economic linkages, and consolidating a growth environment with positive impacts on different value chains.

Published on 30-06-2026. Tags: Featured, News

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Central Reserve Bank Juan Pablo II Alley, between 15th and 17th North Avenue. Postal Box (106), San Salvador, El Salvador.

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