El Salvador National Palace.
SANTA ANA, El Salvador — Foreign direct investment (FDI) to El Salvador climbed above $45 million in the second quarter of 2025, marking a recovery after last year’s steep losses.
The Central Reserve Bank (BCR) reported Tuesday that net foreign direct investments reached $45.21 million between April and June, compared with -$29.7 million in the same two quarters of 2024.
Officials noted the rebound signals renewed investor confidence. However, inflows remain well below the $315.93 million recorded during the first three months of 2025.
Foreign direct investments are a critical economic indicator closely monitored by international organizations and economists, representing foreign capital that remains in the economy after corporate transfers and debt payments are deducted.
Industrial activity accounted for the largest inflows, totaling $80.18 million. Transportation attracted $50.19 million, while financial and insurance services added $46.14 million. Electricity drew $26.60 million in net foreign capital.
The trade sector reversed course, recording $124.18 million in outflows after three straight quarters of growth. Information and communications also pulled back, with $41.57 million in withdrawals.
Spain led all investors with $35.46 million in net contributions, followed by the United States at $33.16 million and the United Kingdom at $20.83 million.
Additional investment flowed from Peru, Bermuda, Colombia, Mexico, South Korea, China, and other nations. Still, more than a dozen countries withdrew more capital than they injected.
Panama, which invested $150.33 million in the first quarter, registered a $61.62 million outflow in the second. Other withdrawals came from Honduras, Germany, and Guatemala.
Despite the mixed results, analysts say the data underscores El Salvador’s reliance on industrial and financial capital, while also highlighting the volatility of regional trade-related investment.
