The economy of El Salvador grew by almost 3% during the second quarter of this year, according to data presented this Friday by the president of the Central Reserve Bank (BCR), Douglas Rodríguez.
According to the financial institution, the Salvadoran economy grew a total of 2.8% in the second quarter of this year (2022), registering two consecutive quarters of growth and reflecting the positive effects of the measures implemented by the Government of El Salvador to counteract the effects of inflation and public safety issues.
“Economic growth for the second quarter of 2022 is 2.8%. With this result, it could be confirmed that El Salvador will not have a recession this year. In addition, we also see how the measures implemented by President Nayib Bukele are becoming a determining factor in the economic growth of this second quarter, “Rodríguez commented.
Similarly, the BCR pointed out that there has been growth in 15 of 19 economic activities in El Salvador, which represent 72% of the Gross Domestic Product (GDP). Those with the highest growth have been: electricity, with 15.3%; administrative and support services, with 11%; the construction sector, registering an increase of 10.3%; personal services, with 6.6%; and the health and communications sectors, with more than 5%.
Within its analysis, the BCR also points out that the main drivers of economic growth in El Salvador in the second quarter of 2022 have been the promotion of tourism, the war against gangs, the implementation of measures against inflation, and the impact of the global economic crisis on El Salvador. Public and private investment has also been a determining factor.
In addition, growth has been boosted from the perspective of demand, thanks to exports, which have had a growth of 11.6%, together with investment, which has had a growth of 5.7%. The increase in private consumption and lower public consumption spending have also been key in this quarterly growth, revealing the good reorientation of expenditures that the government has made, directing them towards public investment.
With these figures, the president of the BCR pointed out that El Salvador will not enter into a recession this year and an economic growth of 2.8% is projected for 2022, which will be achieved based on the aforementioned measures and the good management that has been made of the country’s finances together with the social approach.