Major international financial institutions now agree that El Salvador’s economic momentum is building up speed. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) upgraded its 2026 GDP growth forecast to 4.5%, reflecting a notable 0.6 percentage point increase from its prior projection. This shift brings ECLAC into direct alignment with recent upgrades from both the World Bank and the International Monetary Fund (IMF),confirming strong consensus around the country’s accelerating performance.

With this projection, El Salvador stands out as Central America’s top performer and ranks second overall in Latin America—equaling Panama and behind only Venezuela. Within the broader Latin American and Caribbean region, only Guyana exceeds this growth rate. Central America as a whole is projected to expand by an average of 1.7%, leaving Salvadoran economic expansion well ahead of regional peers like Guatemala (4.1%), Nicaragua (3.7%), and Costa Rica (3.5%).

El Salvador’s strong surge stands in sharp contrast to the broader macroeconomic environment. ECLAC lowered its broader 2026 Latin America and Caribbean growth projection to 2%, down from 2.4% in 2025, warning that recovery across the region remains fragile. “These figures point to a deceleration during the current year and a moderate recovery in the next, within an international context of high uncertainty,” noted the agency, citing global trade conditions,commodity price fluctuations, and climate risks.

Looking further ahead, ECLAC anticipates El Salvador’s economy will cool slightly to 4.1% in 2027, while the wider Latin American region is expected to edge up to 2.5%. Even with this projected moderation, El Salvador remains well-positioned as an attractive, steady high-performer for international investors closely watching emerging markets across the Americas.