A. M. 
Courtesy
Due to the fact that the main economic indicators in the United States present mixed results, El Salvador may be affected, this is due to the unemployment in the US which reached 4%, a level not seen since January 2022, according to the “Financial Performance” report of may 2024, of the Asociación Bancaria Salvadoreña (ABANSA).
In addition, the report highlighted that other US economic indicators that impact El Salvador are: inflation which reached 3.3% and the industrial production index which showed a low dynamism with only 0.1% growth. These data reflect a lower economic growth than expected for the US, which could affect other countries in the region.
However, despite the challenging international context, local banks in El Salvador continue to show positive results. Up to may 2024, the balance of loans increased by 5% and deposits grew by 4.6% year-on-year. These data underscore the strength of the Salvadoran financial system, despite external difficulties.
ABANSA’s report highlights that the financial sector is the economic segment with the highest growth in El Salvador, reaching a year-on-year variation of 10.1% in the economic activity volume index.
However, a slowdown is observed compared to the last months of 2023. Despite this, it is expected that the increase in deposit and credit balances will continue to drive the sector’s growth. In this sense, while the US faces economic challenges that impact the region, El Salvador’s financial sector remains robust and growing, showing a positive outlook for the coming months.
