A. M. 
The salvadoran economy consolidated a significant acceleration in the third quarter of 2025, growing 5.1% year-on-year, following expansions of 2.4% and 4.1% in the first and second quarters, respectively.
This performance reflects a progressive strengthening of productive activity throughout the year, supported by an environment of greater investment, confidence, and security in the country.
The performance of real GDP shows a clear acceleration throughout 2025. After growing 2.4% in the first quarter, the economy accelerated its pace to 4.1% in the second, consolidating with a further boost of 5.1% in the third.
This upward trajectory suggests that El Salvador enters the last quarter of the year with favorable momentum, significantly increasing the probability of closing 2025 with a higher growth rate than that recorded in 2024.
Most dynamic sectors
During the third quarter of 2025, economic activities showed differentiated growth, with leading sectors concentrating the expansionary momentum:
This upward trajectory suggests that El Salvador enters the last quarter of the year with favorable momentum, significantly increasing the probability of closing 2025 with a higher growth rate than that recorded in 2024.
• Construction: Registered the largest growth at 27.1%, driven by public infrastructure projects, housing developments, and the growth of private productive initiatives.
• Mining and quarrying: Experienced growth of 23.3%, reflecting increased demand for construction inputs, cement, steel, and other materials.
• Professional Services: Professional, scientific, and technical services expanded by 20.5%, demonstrating greater demand for specialized services related to investment and business projects.
• Transportation: The transportation sector grew by 9.7%, benefiting from increased mobility of people and goods.
• Business Support Services: Registered growth of 6.3%, as a result of increased productive activity.
• Financial services: Grew 6.0%, reflecting the strength and dynamism of El Salvador’s financial sector.
• Manufacturing industry: Showed an increase of 4.4%, consolidating its recovery since 2021.
• Hotels and restaurants: Grew 3.7%, benefiting from the positive effects of the august holidays and other events that boosted domestic tourism consumption.
Investment: The main driver of demand
From the demand side, economic growth in the third quarter of 2025 was primarily driven by three components:
Investment (24.7%)
Investment solidified its position as the main driver of growth, expanding by 24.7%. This performance reflects the surge in public and private investment in construction, strategic infrastructure projects, and fixed capital formation, which stimulates not only the construction sector but also construction and industrial supply chains, generating multiplier effects throughout the economy.
Private consumption (3.2%)
Private consumption increased by 3.2%, supported by higher incomes for salvadoran households, robust family remittances, and an environment of greater access to credit facilitated by the strength of the financial sector. Although its growth is lower than that of investment, it reflects the gradual improvement of the labor market and consumer confidence.
Exports of goods and services (6.6%)
Exports of goods and services grew by 6.6%, demonstrating that the dynamism stems not only from the domestic market but also from external demand, consolidating a more balanced and sustainable expansion of the salvadoran economy.
Key factors that drove growth
The Banco Central de Reserva has identified several factors that explain the strong economic performance in the third quarter:
• Improved security conditions in the country: A safer environment has fostered a positive business climate, facilitating the execution of investment projects, attracting capital, and generating greater confidence in the private sector.
• Surge in public and private investment in construction: Large infrastructure and housing projects have boosted the construction sector and its supply chains.
• Recovery of the manufacturing industry: Manufacturing activities are registering their best performance since 2021, demonstrating a sustained recovery.
• Strength of the financial sector: A robust financial system has allowed for the channeling of resources toward productive projects and facilitated access to credit for businesses and households.
• Boost to construction and industrial supply chains: Increased demand for materials, professional services, and technology related to investment.
• Dynamism in services due to increased domestic and international demand: Sectors such as hotels, restaurants, transportation, and services have responded positively to the economic expansion.
• Positive effects of august holidays and other events: Holiday periods and special celebrations have stimulated consumption of tourism and gastronomic services.
Outlook for the end of 2025
With strong third-quarter performance (5.1%), El Salvador is well-positioned to close 2025 with a higher-than-expected cumulative growth rate. Projections from the Banco Central de Reserva and other institutions have ranged annual growth between 3.5% and 4%, although more recent estimates point to a year-end figure “above 4%,” driven by robust performance in the second half of the year.
Challenges to sustainable growth
Despite the favorable performance, challenges remain that require attention to ensure more balanced and lasting growth:
Sectoral diversification: Although construction is leading the growth, it is important to strengthen other sectors to reduce the concentration of economic momentum.
Despite the favorable performance, challenges remain that require attention to ensure more balanced and sustainable growth:
Sectoral diversification: Although construction is leading the growth, it is important to strengthen other sectors to reduce the concentration of economic momentum.
Productivity and competitiveness: The country needs to continue investing in human capital, technology, and improving the business climate to raise long-term productivity.
Inclusion and equity: Ensuring that the benefits of growth are distributed equitably among the population and translate into lasting improvements in the well-being of Salvadoran households.
The 5.1% growth projected for the third quarter of 2025 represents a significant milestone in El Salvador’s economic recovery. The combination of improved security conditions, robust investment in construction, financial stability, and a dynamic services sector creates a favorable foundation for sustained growth going forward. To maintain this performance beyond 2025, it will be crucial to continue promoting investment in strategic infrastructure, human capital, and technology, so that the current expansion translates into job opportunities, higher incomes, and a substantial improvement in the quality of life for all salvadorans.
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