The 2024 Population and Housing Census has revealed that El Salvador is experiencing a significant demographic dividend, a factor that could drive economic development, stated Douglas Rodríguez, President of the Central Reserve Bank (BCR), in a recent interview. The Economic Commission for Latin America and the Caribbean (ECLAC) defines a demographic dividend as a phase where the age balance within a population presents an opportunity for development. This occurs when the working-age population (youth and adults) significantly outweighs the dependent population (children and the elderly).
In El Salvador, the majority of the population is between the ages of 25 and 29, with the largest demographic between 25 and 34 years. This shift in age structure not only reduces spending on dependents but can stimulate economic growth through higher income levels and accelerated capital accumulation. Rodríguez emphasized that this active workforce segment provides a unique opportunity to boost the economy, stating, “The demographic dividend is the broadest section of our pyramid, and it is a prime chance for this country to further energize its economy through this population, who are already fit and ready to work, contribute, and produce.”
Rodríguez also highlighted that the current security improvements and growth in sectors like tourism bolster this opportunity, as increased safety allows individuals to work and conduct activities freely. He noted that in past years, young people—the backbone of the demographic dividend—faced threats from criminal groups, which hampered productivity.
“This demographic dividend is incredibly significant, especially now that the economic brake, which was crime and gang-related violence, is either gone or largely reduced. We must leverage this unique economic condition in our country—our security, tourism growth, rising investments, and companies—with this census data showing a strong demographic dividend that can transform and further energize our economy,” Rodríguez added.