El Salvador’s economic momentum accelerated in the second quarter of 2026, reaching 5.1% GDP growth compared to 4.8% in the previous quarter and 3.92% in the same period last year, according to the Central Reserve Bank (BCR). The robust expansion underscores a strengthening macroeconomic outlook, heavily propelled by domestic investment, expanding commercial activities, and double-digit surges in key development sectors across the country.
The construction sector remained the primary engine of economic activity, expanding by 11.20% during the quarter. This momentum was reinforced by a 30.9% year-on-year increase in construction credit and a 65.1% jump in housing finance through June 2026. “This dynamism was accompanied by greater investment,” the BCR noted, pointing to elevated demand for infrastructure, commercial real estate, and residential projects nationwide.
This building boom directly stimulated related industries, driving a 6.29% rise in accommodation and food serviceslinked to expanding tourism, alongside a 6.03% increase in real estate services. Additional gains were reported in utilities, with electricity supply growing 8.11% due to higher seasonal demand, while professional services (7%) and information technologies (5.17%) also posted strong quarterly figures.
Despite the overall economic surge, the agricultural sector faced weather-related headwinds, contracting by -0.95% as the El Niño phenomenon impacted crop yields and water resources. Nevertheless, strong performance across construction, finance, and hospitality kept El Salvador on a solid growth trajectory through the midyear mark.