El Salvador Central Reserve Bank. SAN SALVADOR, El Salvador – Net foreign direct investment in El Salvador fell by 10.96% in 2024, totaling $639.63 million, the Central Reserve Bank (BCR) reported.
Net foreign investment declined by $78.7 million compared to 2023, signaling shifting economic trends in the country’s investment landscape.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| 636.16 | 24.45 | 385.67 | 172.47 | 718.34 | 639.63 |
SEE ALSO: Salvadoran Central Reserve Bank (BCR) Economic Outlook
During 2024, the Central Bank recorded that foreign direct investment accumulated $195.67 million in the first quarter. However, in the second quarter, there was a negative balance of -$29.70 million, meaning there was more capital outflow than inflow.
The net foreign direct investment for the third quarter amounted to $233.60 million; for the fourth quarter, it was $240.06 million.
The industry sector remained the top destination for foreign direct investment, attracting $199.02 million, or 31.1% of total inflows.
The commerce sector followed closely with $182.04 million, representing 28.5% of net foreign investment.
Financial and insurance activities rounded out the top three, securing $143.79 million, or 22.5% of the total foreign investments.
Not all sectors saw gains, however. The transportation sector closed the year with a negative balance, experiencing net outflows of $102.7 million, according to the BCR report.
Regional investment patterns showed Central America contributing $165.17 million, or 25.82% of the total net foreign investment.
Panama led regional investors with $100.38 million, followed by Honduras with $42.15 million and Costa Rica with $30.72 million.
European investors accounted for the largest share, injecting $294.09 million into the Salvadoran economy, making up 45.98% of total net foreign investment.
The United States followed, contributing $113.38 million, 17.73% of total foreign inflows.
The decline in foreign investment comes amid global economic shifts and changing financial dynamics within the region.
The BCR’s report highlights key areas of strength in the economy while pointing to potential challenges ahead as El Salvador navigates foreign capital inflows.
