Friday, 01 April 2022 03:21

BCR forecasts salvadoran economy to grow 3.2% in 2022

Written by Evelyn Alas

The President of the Banco Central de Reserva de El Salvador (BCR), Douglas Rodriguez, said this morning at a press conference that the institution projects an economic growth for 2022 of 3.2%.

This visualization according to the head of the BCR is based on the increased coverage of vaccination against COVID-19, the boost to public investment in infrastructure, private investment projects, exports, remittances.

He also added that the inflation rate could grow, but the Federal Reserve (FED) is taking measures to reduce the impact.

Likewise, he affirmed that the Salvadoran economy grew 10.3% in 2021, as they had predicted before, closing the projection that the institution already had.

The official added that El Salvador managed to recover and surpass the production levels that had been expected before the pandemic and highlighted that few economies are managing to grow.

Rodríguez assured that last year the country produced more goods and services, for that reason companies had to hire more personnel to produce more. This action led the Central Government to collect more income from generating more goods and services, bringing more income to salvadoran households.

He said out that the 19 activities that make up the Gross Domestic Product (GDP) of El Salvador, registered a positive growth, among them, financial and insurance activities, grew 3.8 %.

He also indicated that one of the most productive activities, in 2021, was the manufacturing industry with a growth of 12.2 %, also chemicals and pharmaceuticals, and trade and repair of vehicles.

The agricultural sector grew by 2.1%, this growth is detailed by the normal weather conditions that favored in 2021 and greater demand for our products by the agribusiness and restaurants.

Likewise, artistic, recreational and entertainment activities grew by 61.3% in 2021, restaurants and hotels grew by 36.5%, personal services by 24.9% storage and transportation by 17%, and human health care and social assistance services registered a growth of 16.7%.