El Salvador reports rise in tax revenue and electricity exports

El Salvador reported significant growth in both fiscal revenue and electricity exports during the first eight months of 2026. According to the Ministry of Finance, tax collection reached $6,474.4 million, marking a 12.5% year-over-year increase. This growth was primarily driven by Value Added Tax (VAT), which generated $2,873.1 million, and Income Tax (ISR), which contributed $2,763.5 million. Together, these two components accounted for approximately 90% of total tax revenues.

Simultaneously, data from the Central Reserve Bank shows that electricity exports surged by 63.4% to $18.50 million. This increase is largely attributed to regional energy shortages caused by the El Niño climate phenomenon, which reduced hydroelectric capacity. To meet demand and sustain exports, the country relied heavily on thermal power plants using liquefied natural gas and bunker fuel. Guatemala emerged as the primary buyer, accounting for 84.9% of total energy exports, while Nicaragua also saw a significant spike in electricity purchases compared to the previous year.