A. M. 
The World Bank has updated its economic outlook for El Salvador, projecting growth of 2.7% in 2025, slightly higher than the 2.5% forecast for 2026. These figures reflect stability with respect to the previous projections of October 2024. For this year, forecasts remain at the anticipated levels, consolidating a moderate pace of growth in the country.
At the regional level, economic growth in Latin America and the Caribbean is expected to accelerate to 2.5% in 2025 and 2.6% in 2026. This rebound will be driven by Argentina’s economic recovery, normalization of interest rates and declining inflation. In addition, favorable commodity prices are expected to continue to support exports in the region.
However, the projections are subject to several risks. Persistent fiscal problems, continued high core inflation and possible further tightening of monetary policies could dampen this growth. Internationally, the slowdown in the Chinese economy poses an additional risk by reducing demand for key export commodities.
The report highlights that, despite the economic difficulties faced by the region in 2024, lower inflation and looser monetary policy could favor an economic recovery in the coming years. This environment will benefit countries such as El Salvador, which could capitalize on these factors to stabilize its economy.
Economic performance will depend, to a large extent, on both internal and external factors. The region will need to take advantage of favorable commodity prices and build resilience to fluctuations in global demand to ensure sustained growth.
El Salvador and Latin America have the opportunity to lay a solid foundation for more inclusive growth, although it will be crucial to manage risks and promote economic policies that strengthen fiscal and social stability over the medium term.
