El Salvador’s economy is showing strong momentum at the start of 2026, with the Index of Volume of Economic Activity (IVAE) reaching a 4.3% year-over-year growth through February. This performance marks a significant acceleration compared to the 3.0% increase recorded during the same period last year. According to the Central Reserve Bank, the data suggests a solid upward trend in the nation’s productive dynamics and short-term evolution.
The expansion was primarily fueled by a massive 9.3% jump in the construction sector, which remains the primary engine of the current economic cycle. Other high-performing areas included financial and insurance activities with a 6.2% increase, followed closely by the public administration, health, and education sectors at 5.2%. This multi-sector growth highlights a shift toward a more dynamic and diversified domestic market.
Minister of Economy, María Luisa Hayem, emphasized that these figures reflect a healthy business environment. Speaking on the progress, the official noted: “Our IVAE also gives us positive signs of what happened in February, a 4% growth.” She further pointed out that the Industrial Production Index (IPI) rose by 3.85%, while information, communications, and real estate sectors also maintained steady positive trajectories.
A defining characteristic of this report is the breadth of the recovery, with 8 out of 9 economic activities showing expansion. The only exception was the agricultural sector, which experienced a slight contraction of -0.3%. Despite this, the government views the overall diversification as a critical factor for attracting foreign capital, as it demonstrates stability and a maturing climate for international stakeholders.
Minister Hayem concluded that this consistent growth is essential for building investor confidence. “This is an important variable when it comes to attracting more investment, because entrepreneurs see a country that has security and a business climate that has improved over time,” she stated. As the country moves further into 2026, the 4.3% growth rate serves as a key indicator of El Salvador’s strengthening position within the regional economy.