El Salvador’s economic growth continues to gain momentum in 2025, with the construction sector at the forefront, driven by public investment, legal certainty, and institutional modernization.
The construction industry in El Salvador has emerged as a central pillar in the country’s economic growth strategy under the administration of President Nayib Bukele. Backed by enhanced legal security and a comprehensive national development plan, the sector is experiencing sustained double-digit growth, reinforcing El Salvador’s appeal to both domestic and international investors.
According to data from the Salvadoran Chamber of Construction (CASALCO), the sector recorded 11% growth in 2024, supported by robust public investment initiatives. In 2025, projections estimate the total investment in construction could exceed $2.6 billion, with expected growth between 8.5% and 10%. These figures mark a historic expansion, driven by the government’s strategic collaboration with sector unions, real estate developers, and raw material providers.
“Prior to 2019, construction investment totaled around $1.3 billion, equally divided between public and private sources. That balance might seem ideal, but it wasn’t productive,” explained CASALCO President José Velásquez in a recent radio interview. “Now, with 65% of the $1.55 billion investment in 2024 coming from the public sector, the industry has gained new momentum.”
This renewed dynamism is rooted in the government’s commitment to infrastructure as a driver of prosperity. Key government institutions—including OPAMSS (San Salvador Metropolitan Area Planning Office)—have played a pivotal role by streamlining project approvals and adopting digital tools to accelerate development timelines.
Since the beginning of President Bukele’s administration in 2019, the construction sector has grown by more than $1 billion, demonstrating the long-term impact of public infrastructure investment on the economy. According to the Central Reserve Bank (BCR), construction and real estate combined contribute 12.5% to the nation’s GDP, while the housing sector alone represents 8.78%.
Moreover, the sector now supports more than 160,000 direct and indirect jobs across the country, including an 8% increase in female employment. This growth has stimulated not only local industry but also regional tourism and foreign capital inflows.
“Since 2019, we’ve seen real change,” Velásquez concluded. “Tourists are coming, international investors are arriving, and the entire sector is thriving thanks to the certainty and support provided by this administration.”
As El Salvador continues to transform its urban and rural landscapes, the construction industry is poised to remain a vital force in achieving long-term economic resilience and inclusive development.
