El Salvador’s economy grew by 2.2% in Q3-2022, with no risk of recession

The Central Reserve Bank (BCR) presented this Friday the results of its report on the economic situation in El Salvador in the third quarter of this year 2022, which registered growth, maintaining the upward trend.

Douglas Rodríguez, president of the BCR, pointed out that during the third quarter of 2022, the economy of El Salvador registered a growth of 2.2%, which allows us to project that the country will not enter a recession this year.

“The public policies promoted by President Nayib Bukele have strongly favored the Salvadoran economy. Strengthening security is key to economic growth in the third quarter of 2022, as companies invest more and families have the opportunity to enjoy themselves with peace of mind,” Rodríguez said.

The president of the BCR pointed out that the data confirm that El Salvador has maintained an upward trend in its economy, registering increases above 2% on a quarterly basis. “On average, between the three quarters, there is a 2.7% growth, from January to September of this year, which confirms that the Salvadoran economy is not in recession,” he said.

Given this scenario, the BCR data allow us to forecast a 2.8% growth in the Salvadoran economy for 2022.For 2023, the projection of economic growth could reach up to 3%.

«The projection for economic growth in 2022 remains at 2.8%. We emphasize that, in the last 30 years, El Salvador has grown by no more than 2% on average, despite health crises, economic crises, and global economic slowdowns.The country is growing much more than it has grown in 30 years », he explained.

According to Rodríguez, economic growth in El Salvador in the last quarter of 2022 was strongly boosted by the security measures implemented by the government of El Salvador, as well as by the increase in investment and tourism projections that the country has had in these months.

Another aspect that has also contributed to growth in the third quarter of the year has been leisure activities and the boom in the service area, something that is directly related to the security measures that have benefited El Salvador.

« The increase in private and public investment has been critical to this growth in the third quarter of 2022. Another important strategy is the promotion of tourism to promote El Salvador as a tourist site on an international scale, which is also favored by the security public” said the president of the BCR.

The BCR data also indicate that, in the case of restaurant and hotel activity, a growth of 4.5% is registered. On the other hand, regarding the personal services sector, the increase was 3.5%.

Commercial activities grew by 2.7%, which is due to the increase in demand at gas stations thanks to the measures implemented by the government in the face of the world crises in this area.

Rodríguez also highlighted the growth that the country has registered in terms of the tourism sector, in which, until October of this year, the entry of 2 million tourists has been reported, which is equivalent to a growth of 91.6% with respect to the year The official stressed that this is also a product of security measures.

The president of the BCR also offered data on the growth of formal jobs in El Salvador, which, until September 2022, amount to 956,556 according to figures from the Salvadoran Social Security Institute (ISSS). Of this total, 80% was reported in the private sector.

Finally, Rodríguez pointed out that up to November 2022, $6,807 million in exports had been reported, projecting an annual growth of up to 11.6%. “Exports with an increase of 12.6%, and investments, with 11%, boosted the growth of this third quarter,” he said.