The economic activity in El Salvador has witnessed a remarkable upswing, with a 4.7% growth in the first half of 2023, according to statistics released by the Central Reserve Bank (BCR). Among the various sectors contributing to this surge, the construction sector stands out with an impressive growth rate of 29.8% through June.
The monthly measurement of economic dynamics has shown consistent improvement throughout the first half of the year, as per data from the BCR. The Index of Economic Activity Volume (IVAE) registered a 4.7% increase in June 2023 compared to the same month the previous year. This figure also surpasses May’s results when the growth rate was 3.7%.
“The Index of Economic Activity Volume recorded a 4.7% growth in June 2023 compared to June 2022, reflecting a positive trend in the Salvadoran economic activity,” stated the state bank via the social media platform X.
The BCR highlighted that five key sectors contributed significantly to this growth, with construction leading the pack at a remarkable 29.8% increase.
“The growth of IVAE was driven by private construction projects in residential and public infrastructure, as well as construction related to the XXIV Central American and Caribbean Games San Salvador 2023, among other factors,” noted the BCR.
From the beginning of the year, the private sector had projected an investment of approximately $1.8 billion in construction for a series of large-scale connectivity, real estate, and commercial projects. Additionally, in terms of job creation, data from the Salvadoran Chamber of Construction Industry (Casalco) indicates that the construction sector employs over 25,000 people.
The BCR also pointed out growth in the professional and technical services sector, which increased by 7.7% through June. Furthermore, financial activities saw a 5% rise, government services grew by 4.8%, and industrial activities increased by 3.4%.
In financial matters, the latest report from the Superintendency of the Financial System (SSF) revealed that loan levels, savings, and deposits are on the rise in the country. As of July 2023, the supervisory institution reported $18,068.30 million in loans, $6,072.60 million in savings accounts, and a deposit portfolio totaling $18,309.15 million.
El Salvador’s economic resurgence, particularly in the construction and financial sectors, bodes well for the country’s continued growth and prosperity in the coming months.