A. M. The construction sector in El Salvador continues to consolidate itself as one of the main drivers of national economic growth. Factors such as the security climate and the fiscal strategies implemented by the government have been fundamental to the dynamism experienced by this industry, which is further reinforced by the increase in real estate investment and the arrival of new residents motivated by economic stability.
According to José Velázquez, president of the Cámara Salvadoreña de la Construcción (CASALCO), the sector registered 17.3% growth in the first quarter of 2025, equivalent to an investment of approximately $700 million. This performance reflects not only investor confidence but also the direct effect of public policies aimed at boosting the economy.
Velázquez noted that the construction sector currently contributes approximately 13.5% to the national Gross Domestic Product (GDP), a considerable figure that demonstrates the strategic importance of this activity in the country’s development. This sustained growth also generates employment and strengthens related production chains, such as the materials, transportation, and professional services sectors.
He also emphasized that the fluid and ongoing relationship between the industry and the Executive Branch has been key to maintaining an optimistic outlook for the future. “We have a good outlook for maintaining, and even exceeding, this growth through the conversations and discussions we are currently having with the government”, he stated.
With a favorable economic environment, legal certainty, and fiscal policies that encourage investment, the construction sector is projected to be a key pillar for continuing to strengthen the Salvadoran economy in the coming years, generating a direct impact on the well-being of the population and the country’s urban transformation.
