San Salvador El Salvador. The latest World Bank (WB) economic outlook report projects that El Salvador’s economy will grow by 2.7% in 2025. This forecast, released in January 2025, aligns with the projections made in October 2024.
The World Bank has kept its 2024 economic growth projection for El Salvador at 2.9% and is forecasting a 2.5% growth for the country’s economy in 2026.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|
| El Salvador | -7.9 | 11.9 | 2.8 | 3.5 | 2.9 | 2.7 | 2.5 |
The World Bank’s economic outlook for El Salvador is 0.2 percentage points above the projected 2.5% growth for Latin America in 2025. However, it is 0.8 percentage points below the expected growth for Central America.
The WB Economic forecast is below the 3% rate predicted for this year by the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Monetary Fund (IMF).
Guatemala is expected to lead economic growth in Central America in 2025 with a projected 4%, followed by Honduras at 3.6%. Costa Rica and Nicaragua are both forecasted to grow at a rate of 3.5%.
Meanwhile, Panama and El Salvador are expected to have the region’s slowest growth, with the World Bank projecting a 3% growth rate for Panama.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|
| Guatemala | -1.8 | 8.0 | 4.2 | 3.5 | 3.7 | 4.0 | 4.0 |
| Honduras | -9.0 | 12.6 | 4.1 | 3.6 | 3.7 | 3.6 | 3.6 |
| Nicaragua | -1.8 | 10.3 | 3.8 | 4.6 | 3.6 | 3.5 | 3.6 |
| Costa Rica | -4.3 | 7.9 | 4.6 | 5.1 | 4.0 | 3.5 | 3.4 |
| Panama | -17.7 | 15.8 | 10.8 | 7.3 | 2.6 | 3.0 | 3.5 |
| El Salvador | -7.9 | 11.9 | 2.8 | 3.5 | 2.9 | 2.7 | 2.5 |
SEE ALSO: Salvadoran Central Reserve Bank (BCR) Economic Growth Projection: What to Expect
This year, Guyana, Argentina, and the Dominican Republic are expected to lead economic growth in Latin America, with their Gross Domestic Product (GDP) projected to increase by 12.3%, 5%, and 4.7%, respectively.
