El Salvador has recorded $176.3 million in Foreign Direct Investment (FDI) during the first quarter of 2024, according to the Central Reserve Bank (BCR). This marks an 8.9% increase compared to the same period in 2023.
The investment was primarily directed towards the manufacturing, trade, communications, and electricity sectors. Manufacturing led the growth with $154.1 million, followed by trade with $119.1 million, communications with $27.3 million, electricity with $16.7 million, and other services with $15.7 million.
BCR President Douglas Rodríguez highlighted the significant interest of foreign investors in El Salvador’s economy, noting over $200 million was financed through reinvestment of profits and capital contributions in this period.
Investment sources included $29.07 million from Central American countries, with Guatemala contributing $14.37 million. U.S. investors put in $69.04 million, Mexicans $42.84 million, and Bahamians $22.12 million. European investors added $129 million, led by Spain with $97.26 million, followed by Switzerland with $12.16 million and New Zealand with $10.40 million.
The BCR projects that private sector investment will reach $7.158 billion in 2024, driven by favorable security and economic conditions, with an additional $791 million from public sector investments. Economic growth is expected to be between 3.5% and 4% by the end of the year.
“We anticipate substantial growth compared to the past three decades, overcoming the 2% average growth hindered by gang-related issues,” said Rodríguez.