El Salvador Economic Outlook
June 14, 2022The economy should have lost some steam in the opening quarter of the year. However, activity gathered pace in the tail end of the period. GDP expanded at a four-month quick pace in March on the back of firm expansions in the construction, real estate and financial services sectors. Less positively, activity in the industrial sector contracted year on year. Furthermore, household spending was likely hampered by a notable pickup in inflation amid pricier commodities due to the war in Ukraine. Softening domestic demand is further hinted at by moderating merchandise import growth in the quarter. Turning to the second quarter, domestic demand is expected to have cooled further. Despite easing slightly in April, inflation remained elevated and will have weighed on private consumption. Furthermore, rising core inflation points to more persistent price pressures.
El Salvador Economic GrowthThe fallout from the war in Ukraine and a tougher base of comparison will see the economy expand at a softer clip this year. Elevated inflation will dent household spending, although the rollback of Covid-19 restrictions and solid remittance inflows should support domestic demand. However, heightened debt and fiscal sustainability concerns pose risks. Our panelists see GDP expanding 2.3% in 2022, which is unchanged from last month’s forecast, and 2.0% in 2023.
El Salvador Economy Data
5 years of El Salvador economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
El Salvador Facts
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.