San Salvador El Salvador Capital City.
Remittances from Salvadorans abroad outpaced exports by $2.2 billion through September 2025, reinforcing the nation’s growing dependence on remittances from its citizens abroad, according to the Central Reserve Bank (BCR).
Between January and September, El Salvador received $7.4 billion in family remittances, an 18.5% increase over the $6.2 billion recorded during the same period in 2024. Exports, meanwhile, totaled $5.1 billion.
September registered $819.2 million in remittances—the lowest figure since April, but still higher than last year’s. The data confirm that transfers remain a stable and rising source of income for Salvadoran households.
By contrast, Salvadoran export are showing slower momentum. Shipments of goods abroad rose 5.7% year-over-year from January through September, but September exports fell slightly to $536.7 million, about $4.1 million below 2024’s total for the month.
The imbalance between remittances and exports has widened. For every dollar generated from exports, El Salvador now receives $1.43 in remittances—a proportion that has steadily increased in recent years.
Counting on the U.S. for Remittances
The United States remains the dominant source of this income, accounting for 92.4% of total remittances—$6.8 billion—and marking a 19.5% increase from the previous year.
More than 90% of remittances go toward essential expenses, including food, rent, healthcare, and education. Only 3% are saved or invested, according to a study by the Inter-American Development Bank (IDB).
In 2024, El Salvador received a record $8.5 billion in remittances. If current growth trends persist, 2025 is on track to surpass that figure, further entrenching the country’s reliance on the Salvadoran diaspora.
While remittances bolster consumption and provide stability for millions, they also expose a structural weakness: El Salvador’s productive sectors are not generating foreign currency at comparable levels.
As exports stagnate, the nation faces the pressing challenge of diversifying income sources and revitalizing domestic production.
To sum up, El Salvador’s heavy reliance on remittances signals vulnerability, not strength. While they sustain families, this dependence weakens domestic production, discourages investment, and leaves the nation exposed to economic shifts in migrant-hosting countries.
