The Salvadoran economy maintains solid growth of 5.2% in June 2026

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The Economic Activity Volume Index (IVAE) registered a year-on-year growth of 5.2% in June 2026, a result explained by the positive performance of eight of its nine components. The activities of Construction (10.7%), Government Services (8.0%), Information and Communications (7.8%), Real Estate Activities (7.1%), Industrial Production (4.3%), Professional, Technical and Other Services (3.6%), Trade, Transport, Hotels and Restaurants (3.6%) and Financial and Insurance Activities (2.3%) stood out.

It should be noted that this result incorporates revisions derived from the basic statistical information available to date, provided by different sources through economic surveys, administrative records, and other data collection mechanisms.

Regarding sectoral performance during June 2026, it stands out that the Construction activity registered a growth of 10.7%, driven by the execution of public and private projects, mainly residential and commercial, as well as by road infrastructure works, digital connectivity, and educational modernization; additionally, greater financing for construction projects and residential buildings was observed. This dynamism is also reflected in the annual growth of 13.1% in Apparent Cement Consumption registered in June 2026.

The good performance of the construction sector was accompanied by the growth of Real Estate Activities, which reported an annual rate of 7.1%, favored by the availability and commercialization of residential and non-residential projects, especially new construction. Likewise, the greater financing granted for the acquisition and construction of homes had a positive impact.

For their part, Government Services grew 8.0%, as a result of the strengthening of primary health care, the expansion of vaccination schemes, the expansion of educational connectivity, and the development of training modalities aimed at the over-age population. The continuity of public services, the incorporation of new technologies, and the strengthening of digital infrastructure, especially through telemedicine, also contributed.

Information and Communications activities registered a growth of 7.8%, driven by the increase in sales of special internet packages associated with the transmission of the 2026 FIFA World Cup, as well as by higher advertising revenues on television and radio during broadcasts related to said event. Additionally, the growing migration of periodical publications from print formats to digital platforms contributed.

Industrial production grew 4.3%, driven mainly by manufacturing industries linked to food and beverage processing, pharmaceutical product manufacturing, and maquila activities, favored by both internal and external demand. The positive performance of electricity and water supply services also contributed to this dynamic.

The growth of the Construction and Industry sectors favored a greater demand for Professional, Administrative, Technical, and Other Services, which together grew 3.6%. Likewise, the greater contracting of legal and accounting services associated with the implementation of electronic invoicing, as well as the increase in advertising campaigns linked to the 2026 FIFA World Cup, concerts, international events such as Surf City El Salvador Pro, and various cultural and tourist activities, had a positive impact.

Trade, Transport, Hotels, and Restaurants activities registered a growth of 3.6%, driven by the increase in domestic demand for goods and services. Likewise, the increase in cargo mobilized by air and sea, in line with the greater dynamism of foreign trade, contributed.

For its part, the greater channeling of resources towards consumption, investment, and productive activities was reflected in the 2.3% growth of Financial and Insurance Activities; while adverse climatic conditions affecting the Central American region limited the growth of agricultural activities, which remained stable with a variation rate of 0.0%; however, the various government measures implemented in support of producers in the sector have cushioned these effects and could favor a more positive evolution of the sector during the rest of the year.

The IVAE results observed to date confirm the favorable performance of the Salvadoran economy during the first half of 2026, with said indicator registering an average growth of 4.6%; furthermore, it is important to highlight that this performance reflects an acceleration compared to the same period of 2025, when the IVAE registered an average growth rate of 3.0%.

The economic dynamism observed in 2026 has been supported by the convergence of various favorable factors for the development of productive activities. Among them, the recovery of industrial production stands out, as well as the expansion of the Construction sector and its multiplier effect on activities linked to the production chain. Added to this is the improvement in the perception of public safety throughout the country, which contributes to strengthening the climate for foreign investment and the development of tourism.

Likewise, the different initiatives promoted by the Government of El Salvador, under the leadership of President Nayib Bukele, aimed at improving the efficiency and timeliness of services required by investors and entrepreneurs interested in starting or expanding operations in the country, have had a positive impact.

Also noteworthy are the updates in financial regulations focused on improving services for users, as well as the strengthening of public services through the execution of investment projects, particularly in educational infrastructure, expansion of hospital care and telemedicine services, construction and rehabilitation of roads, and modernization of processes through the digitalization of services, allowing to expand coverage and improve attention to the population.

In this context, the Banco Central de Reserva de El Salvador projects for the year 2026 that economic growth, measured through the Gross Domestic Product, will be within the range of 4.5% to 5.0%, sustained by the continuity of the dynamism of productive activities, the incentives offered by the country to attract new investments, security conditions, and the increasingly prominent positioning of El Salvador as a tourist destination.

This perspective also considers the resilience demonstrated by the Salvadoran economy in recent years against the impacts derived from international geopolitical crises, which have generated inflationary pressures and effects on global supply chains; similarly, it incorporates the effect of the measures implemented to strengthen food security in the face of adverse climatic conditions.

Published on 08-31-2026. Tags: Featured, News

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