IVAE grew 5.6% in May 2026

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The Economic Activity Volume Index (IVAE) recorded a growth of 5.6% in May 2026 compared to May 2025, reflecting the dynamism of the country's productive sectors. During this period, positive results stood out in activities such as Construction (9.7%), Real Estate Services (7.0%), Commerce, transport, hotels and restaurants (6.7%), and Government Services (6.7%).

In this way, the IVAE accumulates five consecutive months with growth rates greater than or equal to 4.0%, evidencing the solidity of the country's economic activity, supported by internal and external demand, as well as by the active management of President Nayib Bukele to boost public investment in infrastructure that provides better quality services for Salvadorans, and the generation of a favorable business environment, reflected in the dynamics of private investment.

Construction was the activity with the highest growth at a rate of 9.7%, driven by the advancement of residential and commercial projects in the private sector, as well as by the execution of public works aimed at strengthening road and educational infrastructure. This performance was backed by greater availability of financing for housing and by the 21.5% growth in Apparent Cement Consumption, an indicator associated with greater execution of construction projects.

In relation to this behavior, Real Estate Services grew 7.0%, favored by the development of residential and commercial projects; likewise, the credit portfolio for the acquisition and construction of housing increased 13.9%, reaching US$3,510 million, which contributed to dynamizing investment and demand in the real estate market.

The group of activities composed of Commerce, transport, hotels and restaurants registered a growth of 6.7%, driven by greater movement of goods and by the increase in internal demand. Accommodation and food services also contributed positively, favored by Mother's Day celebrations and greater consumer traffic to various establishments.

Government Services showed an expansion of 6.7%, a result associated with the execution of social programs and public infrastructure projects. Among these stand out investments in education, the strengthening of health services, and the continuity of initiatives aimed at institutional modernization and reducing the digital divide.

On the other hand, Financial and Insurance Activities grew 4.7%, supported by the expansion of deposits and credits in the banking system, as well as by the increase in transactions carried out through digital channels. Parallel to this, the insurance sector continued to show favorable results, driven by the growth of premiums in various branches.

Industrial Production registered a positive variation of 4.5%, driven mainly by the manufacturing industry, especially pharmaceutical and food activities; likewise, greater demand for construction materials favored extractive activity, while the supply of electricity and water and sanitation services reflected greater demand and infrastructure improvements.

On the services side, Professional, Technical, and Other Services grew 3.9%, favored by greater demand for business, administrative, and support services. Additionally, recreational, cultural, and entertainment activities benefited from the increase in tourism and the holding of national and international events.

For its part, Information and Communications activities showed a growth of 1.1%, driven by greater use of digital services, mobile internet, and information and entertainment platforms, as well as by investments made to expand and strengthen connectivity infrastructure.

In contrast, Agriculture, livestock, forestry, and fishing activities registered a contraction of 0.7%, mainly due to climatic factors that affected agricultural production. Nevertheless, government support measures implemented for the sector contributed to mitigating these effects.

Taken together, the results of the IVAE for May 2026 reflect an economy driven by investment in infrastructure construction, both public and private, which continues to stimulate real estate activity and generate multiplier effects on the rest of the productive sectors, to which is added the solid performance of commerce and services, as well as the contribution of the financial and industrial sectors, factors that contributed to the growth of economic activity and the strengthening of interrelations between the different sectors of the economy.

Published on 31-07-2026. Tags: Featured, News

«« The Salvadoran financial system closes the first half of 2026 in a solid position, with adequate levels of liquidity and capital

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