El Salvador's economy expands 4.2% in first quarter, Central Bank reports

El Salvador's economic activity grew 4.2% in March, according to the country's Central Reserve Bank. The Economic Activity Volume Index (IVAE) showed an average quarterly increase of 4.3%, outpacing the 2025 average. Construction expanded 4.3% in March but slowed since January, while the quarterly average for the sector was 14.3%, below the 17.6% recorded in 2025. The industrial sector rose 2.7% in March, averaging a 2.6% gain for the quarter, two points above the same period last year. Commerce increased by 5% in March and averaged a 4.9% rise for the quarter. Financial activities grew 5.9% in March (3.6% for the quarter). Only the information and communications sector posted negative numbers in March; its quarterly average was 2.8%. Agriculture and livestock grew 0.5% in March but declined 0.2% over the quarter. Public administration and defense, which had been negative throughout 2025, posted a 2.9% quarterly rise. The IVAE serves as a short‑term thermometer for the economy.