Remittances To Support Current Account In El Salvador

• A strong labor market in the United States will drive continued remittance inflow growth in El Salvador and lead to a decline in El Salvador’s current account deficit over the coming quarters.
• Fitch has revised its current account forecasts for 2019 to a deficit of 3.3% of GDP, from 4.6% previously, and for 2020 to 3.2%, from 4.7%, given stronger than expected remittance inflows and weaker import growth over recent quarters.
• A significant slowdown in US real GDP growth poses downside risks to the forecast as weaker economic activity in the US would decrease remittance inflows into El Salvador.

(Source: Fitch)