Consumption, Exports To Drive Growth In El Salvador

• Bolstered by strong remittance inflows, private consumption and export demand will support El Salvador’s steady economic expansion over the coming quarters.
• Fitch has revised up its 2020 real GDP forecast from 2.2% y-o-y to 2.4% and its 2021 forecast from 2.2% to 2.3% as a strong labour market in the US is driving larger than expected remittance inflows.
• A potential escalation in violence as the result of President Nayib Bukele’s anti-crime initiatives poses downside risk to business confidence and investment.

(Source: Fitch)