El Salvador’s Economic Risk: US Recovery Will Provide Tailwinds To Growth

• El Salvador scores 44.2 (out of 100)  in Fitch’s Short-Term Economic Risk Index. The country is highly dependent on household consumption to drive economic growth, with worker remittances from the United States playing a crucial role.
• An improved US economy will bolster remittances and export growth, providing tailwinds to the Salvadoran economy.
• That said, structural weaknesses, including a lack of domestic productive capacity and on-going investor concerns about the security environment, will result in only modest real GDP growth over the coming years.

(Source: Fitch)