A. M. El Salvador will record economic growth of 2.5% in 2025, according to the most recent update from the Economic Commission for Latin America and the Caribbean (ECLAC). Although the figure represents a decrease compared to the previous estimate of 3%, the country remains on a growth path amid an international scenario marked by tariff tensions.
ECLAC explained that this downward revision is largely due to the global uncertainty generated by the new tariffs imposed by US President Donald Trump, who will lead a renewed trade offensive in 2025. The measures have affected supply chains and reduced business confidence in several countries in the region.
Despite the adjustment, El Salvador continues to show economic resilience. The 2.5% rate still represents positive expansion, especially considering that some neighboring countries have suffered contractions or stagnation. Remittances, domestic consumption, and public investment programs have been key to cushioning external impacts.
El Salvador was included on the list of countries subject to a 10% base tariff on exports to the United States. Although the application of the tariff is temporarily suspended, the threat has influenced investment decisions and trade planning across multiple sectors.
However, experts point out that while the measure is not definitively implemented, the country could have room to strengthen alternative markets and improve the competitiveness of its products. The business sector has also initiated dialogues with partners in other regions such as South America and Europe.
With this new figure, ECLAC joins the IMF and the World Bank, which have also moderated their growth expectations for El Salvador. The regional trend indicates that trade uncertainty will continue to be a key factor for Latin American economies for the remainder of the year.
You may also be interested in
