San Salvador El Salvador. The Economic Commission for Latin America and the Caribbean (ECLAC) projects El Salvador’s economy will grow by 3.9% in 2026, continuing the positive economic performance recorded during recent years.
The latest CEPAL economic projection is consistent with forecasts from other international and Salvadoran institutions, including the International Monetary Fund (IMF), the World Bank, and the Central Reserve Bank of El Salvador (BCR).
The IMF’s most recent forecast predicts a growth rate of 4.5% for El Salvador this year. The BCR estimates that economic growth will range from 4.5% to 5% in 2026.
The World Bank takes a slightly more conservative approach, projecting that El Salvador’s gross domestic product will increase by 3.2% in 2026.
ECLAC has projected an economic growth of 3.7% for the year 2027.
The Salvadoran Government announced that the country’s economic conditions are projected to remain favorable through 2026, enabling the country’s economy to continue the strong growth trajectory.
Private investment is expected to become one of the principal engines supporting economic activity during 2026, according to the BCR’s assessment of the factors influencing the country’s economic outlook.
The central bank attributes stronger investment partly to increased business confidence, improved public security conditions, expectations regarding the country’s future economic environment, and government policies designed to attract additional private capital.
Investment activity is particularly visible in residential construction, including vertical housing developments, along with expanding commercial and corporate infrastructure and the development of new logistics and industrial parks across the country.
Tourism is another area attracting capital, with investments directed toward hotel and tourism complexes that could further strengthen a sector that has become increasingly important to El Salvador’s broader economic activity.
Latin American and Caribbean Growth
El Salvador’s economy is expected to grow faster than the regional average in 2026. ECLAC forecasts 3.9% growth for El Salvador, compared to 2.2% for Latin America and the Caribbean as a whole.
Growing geopolitical tensions, tighter financial conditions, and renewed inflationary pressures worldwide are among the main factors expected to slow economic growth across Latin America and the Caribbean, according to ECLAC.
Central America
Central America’s economies are projected to maintain positive growth in 2026, although performance will vary across the region. Nicaragua leads the outlook with 4.5% growth, followed closely by Panama at 4.4%.
Guatemala is projected to grow by 4.0%, while El Salvador follows at 3.9%. Costa Rica’s economy is expected to expand by 3.7%, placing it slightly below El Salvador and Guatemala.
Honduras has the region’s lowest projected growth rate at 3.5%. Nevertheless, all six Central American economies are forecast to expand by at least 3.5% in 2026, indicating broadly positive regional economic momentum.
