The Central Reserve Bank (BCR) of El Salvador has revised its growth projection for the country, estimating up to 4% growth by the end of 2024.
During the first-quarter results report, BCR President Douglas Rodríguez highlighted the national economy’s favorable performance across most indicators. Based on these observations, the BCR now forecasts a growth rate between 3.5% and 4% for the end of 2024, an increase from the 3% to 3.5% forecast in May.
«We expect the Salvadoran economy to grow between 3.5% and 4% in 2024, with inflation reaching between 1% and 1.5% by December,» Rodríguez stated.
He attributed the renewed economic vigor largely to security initiatives implemented by President Nayib Bukele. «Gangs were the main obstacle to El Salvador’s sustainable economic growth. Thanks to President Bukele, this is now history,» Rodríguez affirmed.
Multilateral entities like the World Bank, IMF, and ECLAC have also improved their growth forecasts for El Salvador, supporting a growth rate above 3% for the year’s end.
For the first quarter of this year, Rodríguez reported a 2.6% growth from January to March 2024, significantly higher than the 1.8% recorded in the same period last year. Key drivers included national security measures and a booming tourism sector, with a 42.3% increase in international tourist arrivals compared to 2023.
This economic dynamism enabled 74% of GDP activities to register growth in the first three months of 2024. Entertainment services showed the highest increase at 20.7%, followed by government services (7.5%), transportation (6.9%), financial services (6.7%), restaurants and hotels (5.4%), and electricity (3.7%).
«Tourists can now enjoy the new climate of security and explore all the recreational centers our country has to offer,» Rodríguez added.