Index of Economic Activity Volume (IVAE): Sectoral Analysis in El Salvador

Abstract

The analysis of the Volume Index of Economic Activity (IVAE) reveals that El Salvador’s economy has experienced fluctuations in production over recent years due to various factors. The primary sector has faced challenges, with an average annual growth rate ranging from 0.4% to 1.0%, and significant declines, such as a 2.7% drop in 2018. In contrast, the secondary sector has shown sustained growth, particularly in construction, which recorded a 27% increase in 2023. However, other industrial subsectors, as reflected in the Industrial Production Index (IPI), exhibited more modest performance, with a 0.9% increase. The tertiary sector stands out as the most dynamic, accounting for a significant share of employment due to its focus on goods and services activities. This sector plays a key role in consumption and the transaction of services in the Salvadoran economy. Overall, the study aims to provide a detailed overview of national economic activity, contributing to the analysis of macroeconomic accounts and production outcomes.