Salvadoran Growth Will Slow In 2022 Following Robust 2021 Rebound As Base Effects Fade

• Fitch Solutions has revised its 2021 real GDP growth forecast for El Salvador to 9.2%, from 5.1% previously, as economic activity has surprised to the upside in the year through August. In 2020, the economy contracted by 7.9%. 
• Substantial rebounds in private consumption, exports and investment will persist in the coming quarters, though fading base effects will undermine headline figures. 
• As a result, Fitch has revised down its 2022 real GDP forecast to 2.7%, from 3.0% previously, as the agency anticipates that the accelerated rebound in H121 has brought the expansion forward and growth will return to its pre-pandemic pace.

(Source: Fitch Solutions)