El Salvador recorded the highest economic expansion in Central America at the close of May, positioning itself as the region’s top-performing economy. According to the latest Monthly Indicator of Economic Activity (IMAE) report published by the Executive Secretariat of the Central American Monetary Council (SECMCA), the nation’s economic activity grew by 5.39% year-over-year. This performance placed El Salvador ahead of regional peers like Guatemala (3.72%), Costa Rica (2.28%), and the broader CARD region average of 3.61%.

The country’s strongest momentum in nine months was largely propelled by a robust construction sector, which surged by 9.7%. Private commercial and residential developments, alongside public investments in road and educational infrastructure, served as the primary engines for this expansion. In parallel, real estate services saw a 7% bump, bolstered by a 13.9% increase in loan portfolios for housing purchases and construction.

Highlighting the broader economic impact, the Central Reserve Bank (BCR) emphasized that “the results reflect an economy driven by investment in infrastructure construction, both public and private, which continues to stimulate real estate activity and generate multiplier effects across the remaining productive sectors, complemented by the solid performance of trade and services.”

Out of the nine sectors evaluated by the BCR, almost all showed positive performance, with only agriculture, livestock, forestry, and fishing experiencing a minor contraction of 0.7%. Overall, the surge in investment and credit access continues to strengthen El Salvador’s market outlook within the international business community.