El Salvador’s economic growth for 2022 is expected to be around 1.6%, according to a report by the Economic Commission for Latin America and the Caribbean (ECLAC) released on December 15, 2022.
The overview of the Economies of Latin America and the Caribbean is a report that examines the behavior of the region’s economies over the current year and updates growth estimations for the following year.
In its preliminary report, the ECLAC organization updated its growth projections for El Salvador with a slight improvement for 2022 from 2.5% to 2.6%. However, it is almost four times less than the rate of 10.3% registered in 2021.
| Year | 2023 |
|---|---|
| 2023 | *1.6% |
| 2022 | 2.6% |
| 2021 | 10.2% |
| 2020 | -8.1% |
| 2019 | 2.4% |
| 2018 | 2.4% |
| 2017 | 2.2% |
| 2016 | 2.5% |
| 2015 | 2.4% |
| 2014 | 1.7% |
| 2013 | 2.2% |
| 2012 | 2.8% |
| 2011 | 3.8% |
| 2010 | 2.1% |
The ECLAC growth projection is lower than the projections of the Nayib Bukele administration, which announced, in October, that they expected the Salvadoran economy to grow between 2% and 3% in 2023.
In 2022 Salvadoran exports have surpassed the 2020 and 2021 figures; remittances to the country have also increased. These increases are good news for the Salvadoran economy.
As for the rest of Central America, ECLAC expects that Panama will lead the regional growth next year with 4.2%. Followed by Guatemala at 3.2%, Honduras at 2.7%, Costa Rica at 2.6%, and Nicaragua at 2.1%. El Salvador Economic growth is expected to finish last in the region with a 1.6% growth.
| 2022 | 2023 | |
|---|---|---|
| Guatemala | 4.0 | 3.2 |
| Honduras | 4.2 | 2.7 |
| El Salvador | 2.6 | 1.6 |
| Nicaragua | 3.8 | 2.1 |
| Costa Rica | 4.4 | 2.6 |
| Panama | 8.4 | 4.2 |
The Latin America and the Caribbean economic growth for 2022 will be 3.7%, a 3% reduction from 6.7% in 2021. However, ECLAC warned that the economic growth for next year will slow down and is expected to deepen at a rate of 1.3 %.
The report also worsened the projections for Chile, which is expected to have the worst economic performance in the region next year, with an economic contraction of -1.1%. It is followed by Haiti, with a 0.7% reduction.
| 2022 | 2023 | |
|---|---|---|
| Argentina | 4.9 | 1.0 |
| Bolivia | 3.5 | 2.9 |
| Brasil | 2.9 | 0.9 |
| Chile | 2.3 | -1.1 |
| Colombia | 8.0 | 1.5 |
| Costa Rica | 4.4 | 2.6 |
| Cuba | 2.0 | 1.5 |
| Ecuador | 2.7 | 2.0 |
| El Salvador | 2.6 | 1.6 |
| Guatemala | 4.0 | 3.2 |
| Haití | -2.0 | -0.7 |
| Honduras | 4.2 | 2.7 |
| Mexico | 2.9 | 1.1 |
| Nicaragua | 3.8 | 2.1 |
| Panama | 8.4 | 4.2 |
| Paraguay | -0.3 | 4.0 |
| Peru | 2.7 | 2.2 |
| Dominic Republic | 5.1 | 4.6 |
| Uruguay | 5.4 | 2.9 |
| Venezuela | 12.0 | 5.0 |
| latin America and the Caribbean | 3.7 | 1.3 |
According to the executive secretary of ECLAC, Jose Manuel Salazar-Xirinachs, a challenging year is coming. The largest economies, such as China, are growing at the lowest rates in 40 years. Also, the economic growth of the United States for 2023 is not expected to reach 1%.
