El Salvador recorded a remarkable 64.8% year-on-year increase in net foreign direct investment (FDI) during the first quarter of 2025, according to data released by the Central Reserve Bank (BCR). The country received $322.24 million in FDI from January to March, a significant rise compared to the $195.67 million registered in the same period of 2024.

This is the highest FDI figure for a first quarter since 2018, when the country attracted $388.18 million. “These results reflect a growing investor confidence and mark a clear recovery from the downturn experienced at the end of 2024,” said a BCR spokesperson.

At the close of last year, El Salvador had received $639.6 million in foreign capital, which was $78.7 million (10.9%) less than in 2023. That placed the country among seven Latin American nations — including Argentina, Ecuador, Chile, Colombia, Honduras, and Brazil — that saw declines in FDI, according to the United Nations Conference on Trade and Development (UNCTAD).

In the first quarter of 2025, the commerce sector emerged as the top recipient of foreign investment, attracting $111.01 million, or 34.4% of the total. Financial and insurance services followed with $74.55 million (23.1%), while the industrial sector received $59.31 million (18.4%). Combined, these three sectors accounted for $244.87 million, or 75.9% of the total FDI.

Other sectors also saw capital inflows: agriculture ($4.6 million), electricity ($29.8 million), transportation ($13.19 million), information and communications ($9.79 million), and other services ($21.11 million).

Panama stood out as the main source of foreign investment, contributing $151.08 million (46.8%), followed by Spain with $57.72 million.