El Salvador’s economy has exceeded the historical average for the second consecutive year, with a growth of 2.6% due to public and private investment and the exportation of services.
On Tuesday, the Central Reserve Bank of El Salvador (BCR) provided a report on the country’s economic growth in 2022, which highlights an increase of $3.9375 billion in Gross Domestic Product (GDP) compared to 2021.
El Salvador has recovered from the economic impact caused by the COVID-19 pandemic and has registered a growth rate above the historical average for two consecutive years, translated into a 2.6% increase in the economy in 2022.
El Salvador has also faced other factors that have affected the global economy, such as the war in Ukraine, container shortages, and international inflation, as well as interest rate hikes by the FED, according to the President of the BCR, Douglas Rodríguez, during a press conference on March 28th.
The BCR President said that inflation closed at 7.2% in December, the lowest in Central America and the third lowest in Latin America.
The President of the BCR, Douglas Rodríguez, said that all the economic measures implemented by the Government of El Salvador prevented a recession in the country’s economy and mitigated the adverse international effects.
The head of the institution explained that the main measures that boosted the country’s economy were the war against gangs and the tourism strategy, which led to the visit of 2.5 million tourists to the country in 2022.
Moreover, El Salvador recorded an increase in 17 out of 19 economic activities, with the electrical sector growing by 14.4% in 2022 due to the increase in renewable energy and energy exportation to neighboring countries; the construction sector grew by 8.3% thanks to an investment of $6.5 billion; administrative and support services grew by 7.8%, and recreational services grew by 6.1%.
The transportation sector increased by 5.4% due to increased mobility of people by land and air. Additionally, the fuel subsidy boosted the sector.
Hotels and restaurants grew by 4.3% because tourists spent more in the country. Moreover, there was a 7% increase in employment, with more than 15,000 jobs created. Finally, exports increased by 10.2%, according to the BCR President, Douglas Rodríguez.