The Salvadoran economy will be one of the Latin American countries that will grow the most this year, and the one with the highest upward forecast made by different international organizations, due to the performance that the different economic indicators have shown in recent months.

In this scenario, Exor Latam, an international financial services firm, forecasts that El Salvador’s economy will grow by 4.1% by 2022, a figure higher than the 2.8% projected for the Latin American region.

The consulting firm’s macroeconomic report indicates that the accumulated production of the Salvadoran economy as of the third quarter of 2021 reached $20,953 million, that is, 18.4% higher than the value accumulated in the same period of the previous year.

The forecasts of the consulting firm are aligned with the growth projections for this year of the Central Reserve Bank (BCR), presented at the end of last December.

The Salvadoran economy will be one of the Latin American countries that will grow the most this year, and the one with the highest upward forecast made by different international organizations, due to the performance that the different economic indicators have shown in recent months.

In this scenario, Exor Latam, an international financial services firm, forecasts that El Salvador’s economy will grow by 4.1% by 2022, a figure higher than the 2.8% projected for the Latin American region.

The consulting firm’s macroeconomic report indicates that the accumulated production of the Salvadoran economy as of the third quarter of 2021 reached $20,953 million, that is, 18.4% higher than the value accumulated in the same period of the previous year.

The forecasts of the consulting firm are aligned with the growth projections for this year of the Central Reserve Bank (BCR), presented at the end of last December.

Areas  to grow

The analysis carried out by Exor indicates that employment in the country increased compared to 2020. Statistics show that the private sector reported 716,788 employees until October last year, 59,661 more than in the same period of 2020, thus reflecting an increase of 9 %.

For its part, the public sector employed 187,207 people in the same period, 3.6% more than in 2020, that is, 6,537 more. In commercial matters, Exor affirms that exports showed solid behavior during 2021. As of November, according to the latest figures published by the BCR, they registered a growth of 33.4% compared to 2020, which is equivalent to an amount of $1,517.5 million.

In the case of remittances, money flows into the country remain solid, being the item that suffered the least impact during and after the pandemic. According to the report, the strength of remittances constitutes an essential support for private consumption. With the Chivo wallet alone, Salvadorans received $44.6 million.

Likewise, at the end of 2021, the state’s income had a positive result, reflecting a total recovery with levels higher than in the pre-pandemic years. The main sources of income were VAT ($2,789.2 million) and rent ($2,225.8 million).

In this sense, Exor points out that revenues grew 25.5% more than in 2020 and 17.8% more than in 2019, also exceeding the collection projected in the budget approved at the beginning of the year by $223 million.