Bank lending to El Salvador’s construction sector has surged 31.9 percent in 2025, signaling one of the strongest periods of economic expansion the country has seen in decades. According to the Salvadoran Banking Association (Abansa), banks have issued $1,285.2 million in construction loans through September—an increase of more than $310 million compared to last year.
This sharp rise outpaces every other sector financed by the banking system and reflects the reality of what is happening across the country. The Salvadoran Chamber of the Construction Industry (Casalco) reports that the sector grew 33.87 percent in the second quarter. Casalco president José Antonio Velásquez described the moment as unprecedented, noting: “We are in a historic year. By mid-2025, we had already exceeded what used to be a full year of investment.”
A key factor behind the boom is the acceleration of project approvals from institutions such as Opamss and the Ministry of Housing. Opamss alone is managing about 480 projects and has already released $4.2 billion in investments, with expectations of reaching $5 billion by year’s end.
Abansa highlights that construction now represents 7 percent of total bank credit, surpassing traditional sectors like electricity and services. As Velásquez explained: “Construction is the visible face of a developing economy.” With rising investment, job creation, and a growing pipeline of public and private projects, the sector is set to remain a major driver of El Salvador’s development.