A. M. El Salvador is showing economic recovery in two of its most important sectors, according to information released by economist Otto Boris on social media platform X. El Salvador’s industrial sector reached its highest level since december 2020 in june 2025, with an Industrial Production Index (IPI) of 110.2. Year-on-year growth was 7.5%, achieving a cumulative average of 0.51% so far this year, while the last 12 months saw an average increase of 0.63%.
This upturn is seen as a positive sign to counteract the economic slowdown in an adverse global context. However, compared to the pre-pandemic average level of 2019, the indicator remains 1.92% below.
The liquidity of the salvadoran financial system showed improvements in July 2025. Liquidity reserves increased by US$11.6 million during the month, accumulating an increase of US$658.0 million for the year, which represents significant progress toward recovering pre-pandemic levels.
Currently, reserves are only US$441.2 million below the december 2019 average. This strengthening is largely due to compliance with the recommendations set out in the agreement with the International Monetary Fund (IMF).
These results show that the financial system is strengthening its liquidity buffers. This increases its capacity to respond to economic risks and contributes to the stability of the sector.
Both the industrial recovery and the strengthening of liquidity confirm encouraging signs for the Salvadoran economy, which continues to seek to close the pre-pandemic gap and face international challenges with greater strength.
