In the face of global economic uncertainty, El Salvador stands strong with a growth projection nearing 4%, as stated by Minister of Economy, María Luisa Hayem. Citing a recent report by JP Morgan, the largest investment bank in the United States, the country’s economic growth is estimated to range between 2.5% and 3.9% for the current year.
The report, titled “Research on Latin American Emerging Markets,” underscores El Salvador’s recent period of disinflation, favorable fiscal accounts, signs of economic acceleration, and an expanding Gross Domestic Product (GDP). Notably, the study also highlights robust momentum in sectors such as construction and manufacturing, attributed directly to private investment.
“Despite the complex global context, El Salvador is poised for nearly 4% growth. Unfortunately, there are individuals who seek to perceive negative economic figures in our country. However, we are on the path toward sustained and inclusive economic growth. This is due to all the measures we have been implementing since the beginning of President Nayib Bukele’s administration,” emphasized Minister Hayem.
She added that one of the key variables leading to JP Morgan’s growth projection for the local economy is the downward trend in inflation.
“The reduction in inflation has been influenced by all the proactive, comprehensive measures that have been implemented in a coordinated manner by President Nayib Bukele’s government,” she pointed out.
Minister Hayem’s assertions are in alignment with the indicators provided by the Central Reserve Bank (BCR), which reflect that the inflation index for July 2023 closed at 3.34%, marking a decrease of 0.44 percentage points compared to the previous month of June, which had recorded 3.78% inflation.
According to historical data from the state-owned bank, El Salvador has achieved 11 consecutive months of decreasing inflation with this latest publication.
“At the beginning of the year, there were negative outlooks suggesting that El Salvador was one of the slowest-growing economies. However, once again, we are demonstrating that with the efforts of the government and the drive of our companies and their talent, El Salvador will forge ahead and experience significant growth this year,” she reiterated.
Lastly, the minister highlighted that countries like Colombia are experiencing inflation rates as high as 12%, while Nicaragua recorded an 8.2% inflation rate in July.
As El Salvador continues to navigate the global economic landscape, the country’s adherence to prudent policies and strategic reforms appears to be positioning it for a resilient economic expansion, driven by both public and private sector initiatives.