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According to World Bank data, El Salvador is among the three countries in Latin America and the Caribbean with a projected economic growth rate of 4.5% for 2026, a figure that exceeds the regional average of 2.2% and matches the 4.5% estimate for East Asia and the Pacific. This projection places the country among those with the most favorable growth outlooks in the region, according to an update released for the 2026 annual meetings.
A chart from the international organization ranks El Salvador third among Latin American and Caribbean nations in terms of projected growth, at a rate of 4.5%. Ahead of it are the Dominican Republic and Paraguay, both with an estimated growth rate of 4.7%.
El Salvador surpasses the regional average
El Salvador’s projected growth rate sits 2.3 percentage points above the average forecast for Latin America and the Caribbean, which stands at 2.2% for this year. This implies that the pace of economic expansion expected for El Salvador is more than double the regional average.
This performance also stands out when compared to estimates for other Central American economies. The World Bank projects growth of 4.2% for Panama, 3.7% for Guatemala, 3.6% for Nicaragua, 3.4% for Honduras, and 3.3% for Costa Rica.
These figures highlight variations in growth outlooks across the region. In the case of El Salvador, the 4.5% estimate positions it among the economies with the strongest projected expansion for 2026.
Comparison with East Asia and the Pacific
El Salvador’s growth projection is also notable when compared to other regions of the world. The World Bank estimates that East Asia and the Pacific will grow by 4.5% in 2026, the same rate projected for the salvadoran economy. Although the publication highlights that three countries in Latin America and the Caribbean are outpacing the growth expected for that Asian region, the chart data shows that the Dominican Republic and Paraguay, at 4.7% each, exceed the 4.5% estimate for East Asia and the Pacific. El Salvador matches that projection.
In contrast, other Latin American economies show more moderate outlooks. Growth is estimated at 2.1% for both Brazil and Argentina, while Mexico is projected to reach 1.4%, Uruguay 1.2%, and Chile 0.8%. The chart also includes countries facing projected economic contractions, such as Trinidad and Tobago, Jamaica, Haiti, and Bolivia.
Projections subject to economic developments
These figures are part of the World Bank’s Macro Poverty Outlook, used in the context of the 2026 annual meetings of the Bank and the International Monetary Fund. The data reflect estimates as of september 23, 2026; therefore, they represent projections rather than results for the year’s economic growth.
Real Gross Domestic Product (GDP) growth measures the increase in an economy’s production of goods and services, adjusted for price changes. Thus, the 4.5% projection for El Salvador indicates the expected increase in its real economic activity during 2026.
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