Street market in San Salvador, El Salvador. Photo by El Salvador’s economy grew by 2.6% in 2024, according to data released by the Salvadoran Central Reserve Bank (BCR).
The growth signals indicate continued economic growth, but the increase fell short of last year’s predictions; the Central Reserve Bank predicted an estimated economic growth rate between 3% and 3.5% for 2024.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| 2.44 | -7.89 | 11.91 | 2.95 | 3.54 | 2.61 |
The BCR’s report shows fluctuations in economic growth throughout the year. In the first quarter of 2024, El Salvador’s GDP increased by 4.0%, showing strong economic momentum.
El Salvador’s economy experienced contractions in the second and third quarters, with GDP declining to 1.86% and 1.18%, respectively.
An economic recovery took place in the last quarter of 2024, with GDP growth rising to 3.40%. However, the fourth quarter’s improvement was insufficient to compensate for the economic declines in the second and third quarters.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| 2.43 | -7.90 | 12.71 | 2.96 | 3.54 | 2.61 |
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Despite the 2.6% growth in 2024 being lower than the 3.5% expansion seen in 2023, El Salvador remains on a path of steady economic development; however, the increase is the lowest in Central America.
International financial institutions have projected the country’s economic performance for this year to be similar to last year, except for ECLAC.
The International Monetary Fund (IMF) has forecasted an economic growth of approximately 2.5%, while the World Bank estimates a rate of around 2.7%.
ECLAC, the Economic Commission for Latin America and the Caribbean, has provided a slightly more optimistic outlook, suggesting the country’s economic growth could reach 3%.
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BCR President Douglas Rodríguez has stated that a key factor in El Salvador’s economic growth has been the improved security the country has achieved in recent years.
The Salvadoran economy did not meet last year’s growth expectations; however, the figures indicate stability amid global economic challenges.
