Cepal raises El Salvador's growth projection for 2023 to 2.3%.

In the Preliminary Overview of the Economies of Latin America and the Caribbean released yesterday, the agency raised the country’s GDP projection by two-tenths of a percentage point. Last September it indicated that it would be 2.1%.

The Economic Commission for Latin America and the Caribbean (ECLAC) projected that the Salvadoran economy will grow 2.3% this year, according to the update of the Preliminary Overview of the Economies of Latin America and the Caribbean, released yesterday. Last September, the organization projected that the country’s economy would grow by 2.1%.

Although this projection is two-tenths higher than those published a few months ago, it is lower than the one estimated by the Central Reserve Bank (BCR) at the beginning of this month when it indicated that the local economy will grow 2.7% by the end of 2023.

Likewise, Cepal affirmed that the Salvadoran Gross Domestic Product (GDP) will grow by 2 % in 2024, a projection similar to the one established by the BCR, which assured that it will close next year with 2 % or 3 %.

The upward forecast by the United Nations agency is also close to the one published by the International Monetary Fund (IMF), which indicated that the country’s economy will close with a 2.4% growth at the end of the year. While the World Bank (WB) predicted an increase of 2.8%.

On several occasions, multilateral organizations, as well as risk rating agencies have indicated that El Salvador continues with an upward trend in the economy driven by tax collection strategies, tourism, the reduction of trade costs, and the decrease in the time required to carry out administrative procedures, as well as the security that the nation is currently experiencing.

In addition, recently, the president of the BCR, Douglas Rodriguez, assured that the country continues to position itself as one of the main economies of the region due to the increase in investments and the arrival of international tourists that have left millions of dollars for the national economy, sectors that augur an increase for the closing of 2023.

“We have updated our economic growth projection for this year. As Central Reserve Bank, we are pleased to announce and, according to the projection and estimates made by the institution, that growth by the end of 2023 is expected to be 2.7%,” BCR president Douglas Rodriguez recently assured during a television interview. The official affirmed that the security strategy implemented by the Government has been key in the growth of the economy.

“Security has been fundamental for companies to continue investing and for economic activities to be carried out in a normal way without having to pay extortions, which was a structural scourge that marked the trend in all sectors and all types of companies regardless of size”, he stated.

Source: Diario El Salvador