The Salvadoran Central Reserve Bank (BCR) Projects an Economic Growth of 3% to 3.5% in 2024

The Central Reserve Bank Confirmed a 3.5% Economic Growth in 2023

By Eddie Galdamez  | Updated on Apr 16th, 2024
El Salvador’s Central Reserve Bank BCR Economic OutlookStreet market in San Salvador, El Salvador. Photo by

The Salvadoran Central Reserve Bank (BCR) projects that El Salvador’s economy will grow between 3.0% and 3.5% in 2024, driven by an increase in the development of public and private investment projects.

BCR’s President Douglas Rodríguez affirmed that one of the primary drivers of this economic growth is the improved security climate that El Salvador is now experiencing.

In 2024, economic growth is projected to range from 3.0% to 3.5%, propelled by public and private investments, flourishing tourism, an improved security environment, and the rebound of external demand, which will boost exports. Salvadoran Central Reserve Bank (BCR)

El Salvador’s Central Reserve Bank (BCR) Economic Outlook
2017 2018 2019 2020 2021 2022 2023 2024
2.3 2.4 2.5 -7.9 11.2 2.6 3.5 3.0 to 3.5

The Salvadoran Central Reserve Bank’s 2024 economic projections are close to the 3% economic growth projection of the International Monetary Fund (IMF).

However, it is way higher than the 2.5% estimated by the World Bank and the 2.0% of the Economic Commission for Latin America and the Caribbean (ECLAC).

SEE ALSO: El Salvador’s Challenges and Concerns: What Concerns Salvadorans the Most This Year?

El Salvador’s Economy Grew 3.5% in 2023

Salvadoran Central Reserve Bank President Douglas Rodriguez informed that El Salvador’s economy grew by 3.5% in 2023. He shared this information during a press conference on March 21, 2024, unveiling the country’s 2023 economic growth results.

Rodriguez highlights several factors that contributed to this growth, including enhanced public security strategies, advancements in public and private investment initiatives, and dynamic construction activities.

Additionally, boosted promotion and influx of tourism and hosting international events within El Salvador helped the economy, noted the BCR president.

The economic activities that showed the most significant growth in 2023 were construction at 17.9%, electricity at 14.6%, professional services at 11.1%, recreation at 10.2%, financial and insurance services at 7.5%, and administrative and business support services at 4.5%.

Rodrigez also remarked that the country had received $759.7 million of Foreign Direct Investment in 2023, constituting the highest amount in the last five years.

Foreign Direct Investment to El Salvador (Millions)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$306.34 $396.62 $347.43 $889.07 $826.01 $636.16 $24.45 $385.67 $170.85 $759.73