According to the financial entity, the salvadoran economy continues to recover by registering an annual growth of 3% in the first quarter of 2021, while at quarter-on-quarter level it grew 3.7% due to the production of different economic activities and the favorable evolution of investment and both private and public consumption.

Likewise, in the first three months of 2021, growth was recorded in 12 of the 19 economic activities that make up the Gross Domestic Product (GDP), highlighting agricultural production of 4.0% in industry 2.6% and services such as health 9.4%, communications 8.3%, real estate services 6.1%, electricity 5.0%, financial and insurance services 3.6%, public administration and defense 2.9%, among others.

Among the industries that benefited from the recovery during the quarter were the highly export-oriented industries such as textiles, apparel and maquila. At the global level, exports of manufacturing industries grew US$150.6 million with a variation rate of 10.8%.

The results presented by the financial entity showed that the immunization against Covid-19, which included the hiring of medical and technical personnel for the opening of the vaccination center located in the facilities of Hospital El Salvador, together with the authorization of the services of various laboratories in the country and private hospitals for the regular attention of patients, boosted health services.

Changes in consumption patterns and the trend towards teleworking resulted in improved access to communications and data transmission services and better performance of call centers, including call centers, during the quarter.

Regarding GDP components by expenditure approach, private consumption experienced a year-on-year growth of 2.6% in the first quarter of 2021, mainly explained by the gradual recovery of employment and the increase in family remittances, the latter recorded an increase of 30.4% in the first quarter of the year.

This allowed for higher household demand for products such as bread, publishing and printing products, telecommunications services, other food products, footwear and pharmaceuticals.

In addition, government final consumption expenditure also reported a favorable evolution of 4.7% y/y for the first quarter of 2021. This result is associated to the implementation of the Government's program to reduce the digital gap in the country through the delivery of computers to students of different levels in public institutions, the expenses generated by the electoral event of February 2021, as well as the hiring of personnel and the adequacy of vaccination centers for the beginning of the immunization campaigns.

The report indicated that the gross fixed capital formation (investment) grew 11.1% annually during the first quarter, due to the progress in road infrastructure works, while in the private sector there was an increase in the demand for machinery for the electricity sector, mainly photovoltaic, with the investment of companies such as Capella Solar, San Isidro Fotovoltaica, American Industrial Park and Energía del Pacifico; likewise, this result was favored by the continuity in the recovery of the construction activity in residential and corporate projects.

The positive results observed in the GDP for the first quarter of 2021, only demonstrate an evolution in the different economic indicators available as of May, so the financial institution anticipates that the salvadoran economy will grow 6% in 2021.