The economy of El Salvador advanced 1.8% year-on-year in the second quarter of 2019, following an upwardly revised 2.5% expansion in the prior period. It is the weakest growth since Q2 2017, amid slower rises in manufacturing (0.7% vs 1.1% in Q1); electricity supply (3.9% vs 10.8%); construction (8.2% vs 9.3%); wholesale & retail trade (2% vs 2.1%) and transport & storage (1.5% vs 1.6%). In addition, output shrank in professional, scientific and technical activities (-12.2% vs 4.6%); health & social assistance (-1.1% vs 4.2%) and public administration (-1.4% vs 2.2%). In contrast, the best performing sectors were finance & insurance (4.5%, the same pace as in Q1); food & accommodation services (5.5% vs 2.6%); mining (3.9% vs 2.2%); water supply (4.5% vs -1.8%); real estate activities (3.4% vs 2.7%); administrative services (3.7% vs 3.4%) and agriculture (1.4% vs -0.4%). On a seasonally adjusted quarter basis, the GDP went up 0.3%, after an upwardly revised 0.2% rise in Q1. GDP Annual Growth Rate in El Salvador averaged 3.09 percent from 1991 until 2019, reaching an all time high of 8.10 percent in the second quarter of 1995 and a record low of -2.60 percent in the third quarter of 2009.
GDP Annual Growth Rate in El Salvador is expected to be 2.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in El Salvador to stand at 2.10 in 12 months time. In the long-term, the El Salvador GDP Annual Growth Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.