Econonomic Revitalization in El Salvador: A Data-Driven Approach to Territorial Development
Date issued
Jan 2025
Recent improvements in security, reduced migration, and stronger economic indicators, such as growth and investment, have created favorable conditions for El Salvador's development. With a young workforce, the government aims to boost growth, create jobs, and reduce living costs over the next five years.
This study proposes a territorial approach to identify economic opportunities, targeting 36 municipalities with skilled workers and vulnerable populations prone to migration. These municipalities are grouped into five clusters centered on Santa Ana, San Miguel, San Salvador, La Unión, and Sensuntepeque, benefiting up to 1.6 million people through strategic investments.
Sectoral analysis identified 17 key industries, 10 of which could generate over 10,000 quality jobs per US$100 million investment. Aligning sectors with regional strengths, such as paper manufacturing in San Salvador, the accommodation industry in Santa Ana, fish processing in La Union and dairy production in Sensuntepeque, demonstrate the diversity of opportunities. Additionally, cross-regional sectors like textiles, furniture manufacturing, and Information and Communication Technology (ICT) offer further avenues for growth.
Recommendations include improving vocational training, enhancing the business climate, and investing in infrastructure to foster inclusive, sustainable growth.
This study proposes a territorial approach to identify economic opportunities, targeting 36 municipalities with skilled workers and vulnerable populations prone to migration. These municipalities are grouped into five clusters centered on Santa Ana, San Miguel, San Salvador, La Unión, and Sensuntepeque, benefiting up to 1.6 million people through strategic investments.
Sectoral analysis identified 17 key industries, 10 of which could generate over 10,000 quality jobs per US$100 million investment. Aligning sectors with regional strengths, such as paper manufacturing in San Salvador, the accommodation industry in Santa Ana, fish processing in La Union and dairy production in Sensuntepeque, demonstrate the diversity of opportunities. Additionally, cross-regional sectors like textiles, furniture manufacturing, and Information and Communication Technology (ICT) offer further avenues for growth.
Recommendations include improving vocational training, enhancing the business climate, and investing in infrastructure to foster inclusive, sustainable growth.
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