Vice President of Exor Latam Highlights Economic Growth in El Salvador.

César Addario, Vice President of Exor Latam Central America, lauded the “positive economic growth” that El Salvador has experienced over the past few months. He attributed this success to the government’s responsible financial management, which has been the linchpin of the country’s economic progress.

First and foremost, Addario pointed out that El Salvador is currently experiencing a period of disinflation. He explained, “Recent data indicates that prices are not rapidly escalating, which is beneficial for consumers.”

Furthermore, he highlighted that the projections for the Salvadoran economy suggest a growth rate of 3.5% by the end of this year. This growth is emblematic of more Salvadorans entering the workforce and increased production among businesses.

Adding weight to these positive prospects, the US-based banking giant JP Morgan recently revised its economic forecast for El Salvador in 2023. The bank’s experts now anticipate a growth rate averaging at 3.9%, up from the previous estimate of 2.5%.

JP Morgan attributed this upgraded projection to several factors, citing the country’s accelerated economic momentum over the past months, a decline in inflation rates, and favorable trends in fiscal accounts. According to their report, this growth doesn’t appear to be driven by isolated or transient factors; instead, it’s a manifestation of synchronized momentum. The manufacturing sector is making a robust comeback, the construction industry is flourishing, and other indicators tied to domestic demand are performing well.

Addario elaborated on this point, highlighting that the manufacturing and construction sectors in El Salvador have seen a surge in employment due to increased production and construction activities. This surge signifies a broader economic vitality.

Furthermore, he noted a surge in internal demand, as more people are acquiring services across various sectors within the country. “This surge in consumer confidence reflects a growing trust in the economy,” emphasized the economist.

Addressing the fiscal deficit, Addario affirmed that President Nayib Bukele’s administration is successfully reducing it, despite greater investments in public infrastructure projects. “This demonstrates effective management of expenditures and revenues,” he noted.

El Salvador’s economy is experiencing a robust growth period underpinned by responsible financial management and vibrant sectors such as manufacturing and construction. The increasing internal demand and confidence further reinforce the nation’s economic trajectory. With prudent fiscal management, the country is on the path to sustaining and enhancing its economic prosperity in the foreseeable future.