El Salvador is emerging as one of the region’s strongest economic performers, with the World Bank projecting the country to rank as the third-fastest-growing economy in Latin America in 2026 and fourth across Latin America and the Caribbean. The forecast places El Salvador well above the regional growth average of 2.2%.
President Nayib Bukele highlighted the projection, emphasizing the significance of the country’s economic trajectory compared with expectations from previous years. The latest World Bank assessment points to improved security conditions, fiscal consolidation and stronger private investment as factors supporting El Salvador’s performance.
The World Bank’s regional outlook indicates that economies implementing consistent public policies are already achieving growth rates of between 3% and 4%, demonstrating that stronger economic performance remains possible despite a moderate regional environment.
For El Salvador, the forecast adds to a broader shift in its economic outlook. After years of comparatively limited growth, the country recorded estimated expansion of 3.9% in 2025, driven particularly by private investment and construction, while the World Bank projects growth of around 3.2% for 2026.
The projection reinforces El Salvador’s growing profile in Latin American economic growth, as the country seeks to sustain investment, strengthen productivity and capitalize on improving market confidence.