El Salvador’s financial and insurance sector marked one of the strongest performances in Central America in 2024, growing by 8.4%, according to the Executive Secretariat of the Central American Monetary Council (Secmca). This placed the country just behind Honduras, which led the region with 11.4% growth in the same sector.

Secmca reported that the overall economy of Central America and the Dominican Republic (CARD) grew by 4.1% in 2024, a noticeable improvement over the 3.5% reported in 2023. The organization highlighted that financial and insurance activities—covering loans, deposits, insurance, reinsurance, pension funds, and related services—were key drivers of this growth.

In El Salvador, the Central Reserve Bank (BCR) noted an overall economic growth of 2.6%. Out of the 19 economic activities measured in the country’s GDP, financial and insurance services showed the strongest increase at 8.37%. Meanwhile, manufacturing—long considered the backbone of the economy—continued to contract, declining 1.2% for the third year in a row.

“Contrarily, the manufacturing industries contracted by 1.2%, and information and communication activities showed a 1.3% decline during the same period,” the Secmca report stated.

Other countries in the region also saw notable growth in the same sector. Guatemala matched El Salvador with 8.4%, while the Dominican Republic followed closely at 8.3%. Costa Rica and Nicaragua reported a 5.9% increase.

In Honduras, “the performance was driven by higher revenues from loan interests, commissions, and card-related fees,” according to its Central Bank.

In terms of trade, El Salvador showed the lowest regional growth at 2.9%, while Nicaragua and the Dominican Republic led with 5.9% and 5.5%, respectively.

Despite slowdowns in other areas, El Salvador’s strong performance in finance and insurance suggests a shift in the country’s economic landscape, pointing to a sector that may play an increasingly central role in the years ahead.