El Salvador Net FDI Falls 92% in Q2 2026 to US$9.77m

El Salvador's net foreign direct investment (FDI) plunged by 92% in the second quarter of 2026 to a mere US$9.77 million, according to data released by the Central Reserve Bank (BCR). The steep decline is primarily attributable to a net outflow from Panama, which exceeded the total net FDI for the quarter. In contrast, the same period last year saw net inflows of US$120.68 million.

Even compared to the start of the year, when net inflows reached US$216.26 million, the current figures are significantly lower. The previous quarter of 2025 brought in US$107.27 million, while the first half of 2026 recorded a net FDI of US$226.03 million, marking a 53.57% decrease from the same period in 2025. The biggest capital recipients were the services sector, attracting US$69.88 million, followed by electricity at US$44.69 million, a 66.3% increase.

However, manufacturing, a key driver of exports, saw a significant drop of 64.59% with US$30.9 million. Financial and insurance activities also fell by 70.5% to US$13.69 million. Transport recorded a net outflow of US$165.87 million, while commerce experienced a net outflow of US$27.2 million. The United States was the largest source of FDI, sending US$144.41 million, followed by Spain with US$72.11 million and Mexico with US$43.28 million.

However, Panama, despite being a smaller source, registered a net outflow of US$194.64 million. Despite the weak FDI figure, the country's economy grew 5.1% in the same quarter, with construction leading the expansion. The BCR statistics, which are preliminary and may be revised, show that the Panama outflow alone surpasses the total net FDI for the quarter.