El Salvador Exports Rise as Remittances Lose Pace and the 44-Hour Week Goes Under Review
EL SALVADOR · ECONOMY Key Facts —What happened: El Salvador’s exports reached US$4,036.7 million in January to July 2026, up 4.4 percent on the year. —The other engine: Remittances totalled US$5,924 million in the same seven months, but their growth is slowing month by month. —The slowdown: Yearly remittance growth has slid from 7.3 percent […] The post El Salvador Exports Rise as Remittances…
In January to July 2026, El Salvador's exports reached US$4,036.7 million, marking a 4.4 percent increase compared to the same period in the previous year. Meanwhile, remittances contributed US$5,924 million during the same span, but their growth rate is slowing down. Year-on-year remittance growth dropped from 7.3 percent in March to 4.5 percent by June, official data revealed. However, remittances still account for approximately a quarter of the country's GDP, influencing the budgets of nearly every household.
A tripartite council comprising government, employers, and unions has initiated discussions to modernize the 44-hour workweek. The council's technical commission is set to deliver a proposal on working time by December 2026. El Salvador exported goods worth US$4,036.7 million between January and July, a 4.4 percent increase compared to the same period in 2025.
This growth, reported by the Central Reserve Bank on August 28, is supported by various sectors, with coffee leading the charge. Coffee exports, particularly unprocessed gold coffee, surged by 221 percent in January, and the 2025-2026 harvest cycle is projected to surpass the previous one by 40 percent. Sugar and high-value garments, such as sweaters, have also shown significant growth.
The United States remains the primary destination for El Salvador's exports, accounting for 36.9 percent of the country's total sales abroad in January. El Salvador transitioned to a dollarized economy in 2001, making every exported dollar a dollar earned. Remittances, which reached US$5,924 million through July, constitute about 24 percent of the country's GDP.
About 92 percent of these remittances originate from the United States, where over two million El Salvadorans reside. Economists attribute the deceleration in remittance growth to factors such as US migration policies, deportations, and a recent 1 percent tax on remittances.
On August 27, the Consejo Superior del Trabajo (CST), a tripartite body consisting of representatives from government, employers, and unions, began formal talks aimed at modernizing the workweek. Currently, the Labour Code mandates a 44-hour workweek, comprising eight hours per weekday and four on Saturday. Raúl Díaz, legal adviser to the Chamber of Commerce and Industry, stated that the outdated Labour Code does not reflect contemporary labor realities, leading to rigid work schedules and increased operational costs for companies.
The council seeks to avoid reducing workers' rights and guarantees, with a focus on modifying the workweek structure. Díaz indicated that a technical commission would convene to discuss sector-specific proposals, with a final decision expected by December 2026. While no specific work schedule, such as the proposed 4×4 model of 12-hour days, has been officially considered or rejected, the council's deliberations will significantly shape the future of labor regulations in El Salvador for 2027.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
