Central America’s 2025 Economic Outlook: El Salvador Projects Up to 4% Expansion.

El Salvador is expected to see economic growth between 3.5% and 4% in 2025, according to new projections compiled by the Executive Secretariat of the Central American Monetary Council (Secmca). The figures were released in a bulletin on Tuesday following a regional meeting held between November 20 and 21 in Punta Cana, Dominican Republic, where Central American central banks reviewed economic performance and presented updated forecasts.

The report indicates that El Salvador anticipates growth ranging from 3.5% to 4% for both 2025 and 2026, based on macroeconomic programs and monetary policy documents approved by participating countries. The Central Reserve Bank (BCR) also projected that inflation will remain low, between 0.9% and 1.5% during the same period.

Although the BCR has not publicly presented its 2025 economic outlook, the country’s GDP grew 2.3% in the first quarter of 2025 and accelerated to 4.1% in the second quarter. A regional comparison included in the Secmca bulletin shows differing forecasts across Central America: Costa Rica expects growth of 4.2%, Guatemala between 3% and 5%, Honduras from 3.5% to 4%, Nicaragua between 3% and 4%, and the Dominican Republic at 2.5%.

A representative at the meeting noted in the document that “these projections reflect a continued strengthening of the region’s economic stability.”