Extended Lockdown Will Cause Greater Contraction In El Salvador

• The El Salvadoran economy is expected to contract substantially in 2020 as strict lockdowns measures continue to undermine private consumption and a sharp recession in the US weighs on remittance inflows and exports.
• Fitch solutions has revised its 2020 real GDP growth forecast to -6.2% y-o-y, from -2.5% previously, due to delays in lifting coronavirus restrictions in El Salvador and the continued spread of the disease in the US.
• Risks to the forecast remain weighted to the downside, as a substantial worsening of the outbreaks in El Salvador or the US would further delay the recovery in economic activity.

 (Source: Fitch)