El Salvador’s exports grew by 7.6% in Septermber

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By LatAm Reports Staff Writers

According to the BCR, exports from January to September accumulate a fall of $189.9 million, but the volume grows.

Exports experienced agrowth of 7.6 % in September alonea dynamic that was not enough to bring the sector to positive terrain andaccumulate a contraction of 3.8 %, the Central Reserve Bank (BCR) reported Monday.

In September alone, $540.7 million was exported, an increase of $38.3 million over the $502.4 million reported in the same month of 2023.

However, in the cumulative January to September, export revenues maintain a contraction of 3.8 percent after adding a little more than $4.60.2 million. For 2023,Salvadoran companies have stopped collecting $189.9 million.

The volume, on the other hand, grew 1.5 percent with more than 2,709.5 million kilograms, an additional 39 million at 2023. This.means companies have shipped more goods, but at a lower price.

The El Salvador Exporters Corporation (Coexport) expects exports of goods at the end of 2024 to remain in the same digits as last year ($6,498 million), while services experience significant growth due to higher demand for tourism, call center and logistics.

According to the guild, total exports will be around $12 billion.


Demand for assets of major partners falls

The Central Bank reports that exports to the United States – which acquires 33.6 percent of the goods – plummeted 10.3 percent in the first nine months of the year. The companies sent $1,655.13 million to their U.S. buyers, $187.8 million less than in 2023.

There was also a contraction of 5.1 percent in demand from Honduras, the third trading partner with a share of 15.8 %. From January to September, it acquired assets valued at $766.8 million.

With 19.7 percent of demand, Guatemala is the second most important partner for Salvadoran companies, where demand grew 5.2 percent after accumulating $955.9 million.

On the list of the top 50 trading partners, there were sharp falls like 62.1 percent to Canada, as well as 54.2 percent shipments to Spain plummeted. Trade to the UK, 69.1 per cent to Germany and 34 per cent to Australia, also contracted 28.3 per cent.

Imports, for their part, accounted for $11,713 million, equivalent to a contraction of $39.5 million (0.3 per cent). According to the BCR, the largest fall was recorded in maquila goods, by 24.9 %, followed by intermediates, 3.2 %. Consumer goods grew 3.5 per cent and capital goods 3.1 per cent.

Salvadoran remittances grew $80.2 million as of September

The Central Bank reports that family remittances amounted to more than $6,134.6 million as of Sept.

Remittances received by Salvadoran households exceeded $6,134.6 million from January to September, with an annual growth of $80.2 million, the Central Reserve Bank (BCR) reported Monday.

This income – which is the support for 24 % of Salvadoran households – increased 1.3 percent million compared to the $6,054.4 million recorded in the same period in 2023. According to the BCR, this is the lowest growth rate since the covid-19 pandemic, in 2020, when there was a 0.5% variation.

From January to September, Salvadorans abroad carried out 19.2 million operations to send money to their families in the country, with a growth of 2.9 percent compared to 18.7 million in 2023.

92.8 per cent of remittances came from the United States, exceeding $5.691.5 million. According to the Central Bank, revenues from this country grew by just 1 per cent.

Canada is the second country of origin, with $61.9 million (7 per cent), followed by Spain with $42.2 million (-23.2 %) and Italy with $38.4 million (-22.2 %).

On the list of the 50 countries of higher-weight origin, the BCR reports unusual growths, such as Israel with 234.5 percent, but the figure reaches $300,000. Remittances from Saudi Arabia also grew 174 per cent, at $200,000.

Growth by region

The average shipment was $309.2 in September nationwide. As always, Chalatenango stands out with a level of $391, while the lowest was reported in Sonsonate, at $282.5.

According to the BCR, remittances that arrived at the homes of the departments of La Unión and San Salvador were contracted 0.1% and 2.4 %, respectively. Meanwhile, this revenue grew 7.1 percent in Liberty, the highest rate nationally.

Again, remittances sent through cryptocurrency wallets contracted, by 1.4 % as of September, after accumulating $64.5 million. That figure was $900,000 lower than the $65.5 million reported in 2023. In addition, it accounted for only 1.1 per cent of all that received.

This article has been translated after first appearing in Diario El Mundo