El Salvador projects economic growth of 2.6% by 2022, the highest average in decades despite inflation

Today, the president of the Central Reserve Bank of El Salvador (BCR), Douglas Rodríguez, provided a report on the country’s economic growth, in addition to the economic projection for this year, in which he established that El Salvador will have economic growth of 2.6%, the highest average in the last 20 years despite the impact of global inflation.

El Salvador is also positioned as the fourth country with the lowest inflation rate in Latin America, thanks to the implementation of economic measures by the government of President Nayib Bukele.

«Measures such as the increase in the minimum wage, the solid vaccination process, the proper management of the pandemic, the Territorial Control Plan, the development of public investments, the stimulation of private investments, the promotion of tourism, and the elimination of health restrictions translated into economic growth of 2.4% in the first quarter of 2022.

Douglas Rodríguez, president of the Central Reserve Bank of El Salvador.

Currently, the inflation rates of countries such as Argentina (60.7%), Brazil, Chile, Paraguay, and Nicaragua (more than 10% and 12%) have risen to levels considerably higher than El Salvador, which has a percentage of inflation of 7.5%, below the average for the region (8.3%).

«Without a doubt, the strategies adopted by the government before, during, and after the pandemic have given an economic result that has favored El Salvador despite the adverse economic effects that are occurring in the world,» stated the president of the Central Reserve Bank of El Salvador.

In addition, the official explained that there are five activities with the greatest influence on economic growth of 2.4% during the first quarter of the year, including transportation (46%), administrative and support services (40%), services government (36%), restaurants and hotels (32%), and health (23%).

These five main activities represent 1.8% of total economic growth (2.4%). The president of the BCR stressed that these actions are influenced by the promotion of tourism thanks to the mobility that this activity requires. In addition, the elimination of sanitary requirements to enter the country has made access easier and faster for tourists.

The commitment to tourism

There are international firms, such as Forward Keys, that indicate that, during the first quarter of 2022, El Salvador had an increase in tourism by air, which establishes that it is the most visited country in Latin America.

Entertainment services have grown by 13.1% compared to 2021, among which are activities such as visits to museums, theaters, concerts, movie theaters, nightclubs, stadiums, amusement parks, among others.

«(On the other hand), CEPA confirmed that there was a 125% increase in the number of tourist visits, and the ISTU (Salvadoran Institute of Tourism) established that a total of $99.7 million was collected as a result of foreign exchange from internal tourism, which exceeds the historical levels registered in the country», indicated the president of the BCR.

Regarding the activities of restaurants and hotels, a growth of 13.6% has been registered. According to data from the Ministry of Tourism, during the first quarter of 2022, up to 700,000 tourists entered.