El Salvador leads Central American economic growth

El Salvador recorded the fastest economic growth in Central America in May, with economic activity expanding 5.39% year-over-year. This growth rate surpasses regional peers such as Guatemala at 3.72% and Costa Rica at 2.28%. The expansion was primarily driven by the construction sector, which grew 9.7% due to increased private-sector development and public infrastructure investment. Additionally, real estate services grew by 7%, and loan portfolios for housing and construction rose by 13.9%.

Five years after El Salvador became the first country to adopt Bitcoin as legal tender, the results of the experiment show mixed outcomes. While President Nayib Bukele intended for Bitcoin to promote financial inclusion for the unbanked, research indicates that users tend to be younger, male, urban, and highly educated individuals who often already possessed bank accounts. Although the government incentivized use through the Chivo wallet by offering initial Bitcoin, many early users did not engage in subsequent transactions. Despite not becoming a mainstream daily payment method, the move has placed Bitcoin on the global political and governmental agenda.