A. M. The World Bank has reduced the economic growth projection for El Salvador in its report “The State of the Latin America and Caribbean Region”, corresponding to the second quarter of the year. According to the international organization, the salvadoran economy will grow by 2.2% in 2025, a decrease from the 2.7% projected in january. For 2026, the estimate was also adjusted downward, from 2.5% to 2.4%.
This downturn in the economic outlook is not unique to the World Bank. The International Monetary Fund (IMF), in its most recent World Economic Outlook report, also reduced its projection for El Salvador to 2.47% in 2025, which represents a drop of 0.6 percentage points compared to the 3% it had previously forecast.
At the Central American level, other countries show more encouraging growth figures for 2025. Panama, Guatemala, and Costa Rica lead with a projected 3.5%, followed by Nicaragua with 3.4% and Honduras with 2.8%.
The World Bank report warns that Latin America and the Caribbean will only grow by 2.1% in 2025, making the region the slowest-growing in the world. This low expansion is framed within a challenging global economic environment and a region marked by low investment, high levels of indebtedness and volatile external conditions.
Despite this panorama, there are ambiguous signals at the domestic level. The report notes that, although inflation is being contained, the reduction in interest rates has slowed. However, consumer and business confidence remain stable or increasing, especially in sectors such as tourism, which has shown a full recovery in the Caribbean.
