El Salvador’s economic momentum showed no signs of slowing down as the Central Reserve Bank (BCR) reported a 4.2% expansion in economic activity for March. This solid performance ensures that the country’s economic growth has consistently remained above the 4% threshold throughout the first quarter of 2026, following gains of 4.8% in January and 4% in February.

The latest economic update highlights a notable shift in the drivers of El Salvador’s growth narrative. While construction previously dominated the headlines, financial and insurance activities led the charge in March with a 5.9% expansion, closely followed by a 5.8% surge in professional, scientific, technical, and administrative services. Additionally, the commerce, transportation, and storage sectors proved vital to the monthly boom, posting a healthy 5% increase.

In contrast, the powerhouse construction sector experienced a notable deceleration, slowing down to 4.3% growth—its lowest performance since October 2025. This single-digit expansion stands as a sharp contrast to the stunning 27.3% and 11.3% growth rates recorded in the first two months of the year. Despite the cooldown, the real estate market managed its best result in a year, growing by 4.4% due to steady housing demand.

The broader economic landscape reflected mixed but improving dynamics across traditional sectors. The agricultural sector finally emerged from negative territory to mark a modest 0.5% advance, while industrial production rose by 2.7%. The sole outlier in the report was the information and communications sector, which was the only activity to remain in negative territory after experiencing a minor 0.3% contraction.