AGP Executive Report

El Salvador-US Economic Ties: The U.S. Embassy in San Salvador says Washington plans an economic summit with El Salvador, calling Bukele a key regional partner and flagging talks on trade, investment, and private-sector opportunities. Banking Momentum: El Salvador’s banking sector surged in H1 2026, with loans up 10.4% to $19.98B and deposits up 13.4% to $23.26B, led by enterprise lending and construction growth. Services Exports Lift: Service exports hit $1.53B in Q1 2026, up 12.4% year-on-year, driven mainly by tourism (58% of the total). Tech Skills Push: El Salvador is expanding its partnership with Platzi to add new courses in AI, English, leadership, and entrepreneurship, supporting the country’s push to build a tech workforce. Science Diplomacy Framework: El Salvador launched a National Strategy on Science, Diplomacy, and Academic Cooperation, with ANIA set to support AI-enabled coordination for research and exchanges. Cihuatán Conservation Funding: The U.S. approved a $224.6K grant to conserve the Cihuatán Archaeological Park, bringing total U.S. support above $500K. Regional Context: ECLAC forecasts stronger growth for the Dominican Republic (4% in 2026; 4.4% in 2027) as Latin America faces a tougher global environment.

Banking Momentum: El Salvador’s banking sector kept accelerating in H1 2026, with loans up 10.4% to $19.98B and deposits rising 13.4% to $23.26B, led by enterprise lending (+13.6%) and construction credit (+30.9%). Services Exports Surge: Service exports hit $1.52B in Q1 2026 (+12.4% y/y), driven mainly by tourism ($884.4M), plus transport and tech services—showing the export base is widening. Tech Skills Push: El Salvador is expanding its partnership with Platzi to add more AI, English, leadership, and entrepreneurship courses, reinforcing the country’s push to build a tech workforce. Science Diplomacy Plan: The government launched a National Strategy on Science, Diplomacy, and Academic Cooperation to link research, universities, the private sector, and international funding, with ANIA supporting AI-enabled coordination. US-Backed Heritage Funding: The U.S. approved a new $224.6K grant to conserve the Cihuatán Archaeological Park, bringing total U.S. support above $500K. US-Regional Economic Ties: The U.S. Embassy reiterated Bukele as a key partner and flagged plans for a bilateral economic summit focused on trade and investment. Regional Context: ECLAC projects the Dominican Republic growing 4% in 2026 and 4.4% in 2027, while Jamaica’s remittances rose 4.2% in the first half of 2026.

El Salvador–U.S. Economic Ties: The U.S. Embassy called President Nayib Bukele a key regional partner and said Washington is planning a bilateral economic summit focused on trade, investment, and private-sector opportunities. Banking Momentum: El Salvador’s banking sector kept accelerating in H1 2026, with loans up 10.4% and deposits up 13.4%, led by commercial and industrial lending and strong construction growth. Services Exports Surge: Service exports hit $1.52B in Q1 2026 (+12.4% y/y), driven mainly by tourism, which delivered $884.4M and widened El Salvador’s push beyond goods. Skills for the Gig Economy: WorkTech El Salvador wrapped a four-year EU/IDB-backed push that reached 13,500 independent workers, improving training, financial inclusion, and access to social protection. Digital Skills Partnership: El Salvador and Platzi are expanding collaboration to add new courses in AI, English, leadership, and entrepreneurship for broader workforce upskilling. Science Diplomacy Framework: El Salvador launched a National Strategy on Science, Diplomacy, and Academic Cooperation, with ANIA set to support AI-enabled coordination for research and international collaboration. U.S. Funding for Heritage: The U.S. approved a $224,586 grant to conserve the Cihuatán Archaeological Park, bringing total U.S. support there above $500,000. Infrastructure Connectivity: CAF opened a call for proposals to study El Salvador’s first submarine cable, aiming to cut reliance on land-based internet operators.

US–El Salvador Cultural Funding: The U.S. approved a new $224,586 grant to conserve the Cihuatán Archaeological Park, bringing total U.S. support there to over $500,000, with work focused on structures, documentation (photo/3D/technical drawings), and upgraded visitor materials. AI & Skills Push: El Salvador is expanding its partnership with Platzi to add new courses in AI, English, leadership, soft skills, and entrepreneurship, reinforcing the country’s push to build a tech workforce. Science Diplomacy Framework: The government launched a National Strategy on Science, Diplomacy, and Academic Cooperation, with a foreign-affairs/education roundtable to drive research links and an ANIA role in AI capacity and an AI agent for the program’s management. Digital Infrastructure: CAF opened a call for proposals to fund studies for El Salvador’s first submarine cable, aiming to cut reliance on terrestrial internet operators. Tourism & Investment Plan: El Salvador unveiled a 15-year master plan to revitalize San Salvador’s Historic Center with IDB support, targeting tourism growth, heritage protection, mobility, and safety. Exports & Growth Outlook: ECLAC lifted El Salvador’s 2026 growth projection to 3.9% and reported stronger regional performance, while also noting broader Latin America growth is being revised down.

Historic Center Plan: El Salvador unveiled a 15-year master plan to revitalize Historic San Salvador with the IDB, aiming to turn the downtown into a top tourism and investment hub through mobility, safety, and heritage protection. Trade Momentum: Exports rose 4.1% in H1 2026 to $3.40B, with volume up 10.3%, led by manufacturing and a strong U.S. market; top exporters are highly concentrated among a small group of large firms. Growth Upgrade: ECLAC lifted El Salvador’s 2026 GDP growth forecast to 3.9%, citing resilient external revenues, especially remittances. Tech & AI Push: ANIA appointed robotics/AI expert Manuel Cardona as strategic advisor to expand sovereign AI infrastructure and scale CUBO_ai talent training. Digital Assets Spotlight: Platzi CEO Freddy Vega said his recent visit shows El Salvador’s decade-long transformation in security, business climate, and infrastructure. Customs & Security: El Salvador strengthened customs security to curb smuggling, tax evasion, and money laundering. US Immigration Fallout (Salvadorans): In New York, an El Salvadoran accused of piloting an overcrowded, unlicensed boat that capsized—killing a mother and infant—was arrested by ICE and faces deportation after criminal proceedings.

AI Strategy Push: El Salvador’s National Artificial Intelligence Agency (ANIA) named robotics and AI expert Dr. Manuel Cardona as Strategic Advisor, aiming to build sovereign AI infrastructure, expand industrial automation, and scale the CUBO_ai talent pipeline (including a proposed “Free Robot Zone”). Customs & Anti-Crime: The government signed a cooperation agreement between the Customs Authority and the Attorney General’s Office to speed up information sharing and strengthen action against tax evasion, smuggling, and money laundering, with digitalization at the center. Bitcoin Ecosystem: El Salvador highlighted continued Bitcoin accumulation—about 1 BTC per day—alongside education, events, and entrepreneurship efforts to deepen adoption after legal-tender status in 2021. Agriculture Support: The Ministry of Agriculture and Livestock delivered subsistence assistance to farming families in the eastern and central-paracentral regions facing dry-weather risks to protect food security and livelihoods. Regional Trade/Investment Signals: El Salvador also continues positioning itself as an investment hub through digital assets and innovation, while expanding trade links (including a preferential-tariff deal with Belize). Investor Watch: John C. Malone’s Liberty Latin America reported an indirect purchase of 50,696 shares, a move that may interest regional telecom/infrastructure investors.

Rural Resilience: El Salvador’s Ministry of Agriculture and Livestock is delivering subsistence support to farming families in the east-central region hit by dry weather, aiming to protect crop yields and household food security. Tourism Skills Push: La Libertad Sur’s Labor Training Center (CFL) and Innova Experience Academy launched “Embajadores y Guías Turísticos,” a one-month, fully funded program for locals (18–45) to train as certified guides, plus new coffee/barista training in Santa Tecla. Road Safety Investment: The government is rolling out a highway lighting project on the Carretera de Oro and other major corridors, targeting 100+ kilometers to improve visibility for motorists and pedestrians. Bitcoin + Innovation Calendar: San Salvador is set to host Bitcoin Histórico (Nov. 11–12) and related events in November, including EmTech AI LatAm and a Bitcoin Circular Economies Summit, positioning El Salvador as a tech and digital-assets hub. Global Trade/Industry Note: El Salvador’s DISAL won major medals at the 2026 San Francisco World Spirits Competition for Vodka Mizata (Double Gold) and Ron de Autor (Silver).

El Salvador Infrastructure: The Ministry of Public Works has kicked off a nationwide highway lighting push, targeting more than 100 km—starting with the Carretera de Oro near San Martín—to improve road safety on key corridors including routes toward the Port of Acajutla. Bitcoin & Innovation Events: San Salvador is set to host a major November lineup: Bitcoin Capital Summit (Nov 10), Bitcoin Histórico (Nov 11–12), EmTech AI LatAm (Nov 18–19), and the Bitcoin Circular Economies Summit (Nov 19–20), positioning El Salvador as a tech and digital-assets hub. Exports & Business Expansion: Ron Cihuatán is expanding in South Korea, aiming to boost visibility with hospitality and beverage decision-makers and strengthen Salvadoran rum exports. Regional Trade: El Salvador and Belize signed a preferential tariff trade agreement after nearly three years of talks, expanding market access for both sides. Construction & Growth Signals: Coverage points to El Salvador’s construction sector hitting historic mid-year growth, supported by banking credit and digital assets.

Infrastructure & Safety: El Salvador has started a highway lighting push, targeting more than 100 km of major corridors, including the Carretera de Oro and sections of the Troncal del Norte and Claudia Lars Peripheral Highway, with flag-colored poles to boost night visibility for drivers and pedestrians. Bitcoin, AI & Innovation Calendar: San Salvador is set to host a packed November lineup—Bitcoin Histórico (Nov 11–12), EmTech AI LatAm (Nov 18–19), and the Global Bitcoin Circular Economies Summit (Nov 19–20)—as the government markets El Salvador as a tech and digital-assets investment hub. Trade & Exports: Ron Cihuatán is expanding in South Korea, aiming to deepen presence in hospitality and beverage channels and lift Salvadoran exports in Asia. Industry & Business Growth: El Salvador’s construction sector is reported to be hitting historic mid-year growth, supported by banking credit and digital assets, while cement imports have reached a 30-year high amid the building boom. Gaming Investment: EGT has expanded in El Salvador via a new Imperius Casino installation in San Miguel, signaling more direct gaming equipment investment in the market. Local Economy & Community: EGT’s move and the broader investment push come alongside continued community-facing developments, including housing delivery milestones in San Salvador.

Construction & Trade: El Salvador’s construction boom is pushing cement imports to a 30-year high, with hydraulic cement and clinker imports reaching $36.15M in H1 2026 (+39% YoY) and volumes jumping to 389.33M kg (+100.2M kg), as China and other Asian suppliers expand supply. Finance & Real Estate: The same momentum is showing up in lending: construction led corporate borrowing with $341.6M in new loans (+27.6% YoY), while developers increasingly use digital asset tokenization via CNAD to tap new capital. Infrastructure Delivery: The Los Chorros mega-project on the Pan-American Highway is at 60% completion, with a planned full weekend road closure for rock blasting tied to slope stabilization and the Francisco Morazán Viaduct works. Energy Regulation: El Salvador is rolling out a regulatory framework for solar self-consumption, aiming to speed approvals for home solar systems. Crypto Payments & Policy: Treasury’s GENIUS Act enforcement moves forward with a proposed rule defining who can issue and sell payment stablecoins in the U.S., while local crypto adoption stories keep growing, including Bitcoin being used for everyday purchases in South Africa’s Witsand. Gaming Investment: EGT expanded in El Salvador via a new Imperius Casino installation in San Miguel, marking its first collaboration with the operator. Food & Community (East Bay): Salvadoran and Mediterranean restaurant openings in Richmond include Antojitos Caseros by El Cuscatlan and Amor Grill Falafel and Shawarma, alongside Balompie Sports Bar & Grill bringing SF pupusas across the bay.

Construction & Infrastructure: El Salvador’s construction boom is pushing cement imports to a 30-year high, with first-half 2026 hydraulic cement and clinker imports rising 39% to $36.15M and volumes up sharply as China leads supply. Finance & Capital Markets: The same surge is being fueled by both bank credit and digital asset tokenization, with construction grabbing $341.6M in new loans (+27.6% YoY) and multiple projects registering tokenized funding routes. Mega-Project Update: The Los Chorros corridor mega-project on the Pan-American Highway is at 60% completion, with a planned full road closure this weekend for controlled rock blasting tied to viaduct and lane expansion work. Energy Policy: El Salvador has started implementing its renewable “self-consumption” regulatory framework, with official procedures now in place for solar PV systems, including grid connection and surplus injection rules. Trade & Investment: Turkey’s Yilport secured a $1.62B deal to modernize and operate El Salvador’s Acajutla and La Unión ports under a 50-year concession, aiming to triple Acajutla capacity and revive La Unión. Payments & Stablecoins: Bitget Wallet’s COO says stablecoins and blockchain can support faster cross-border payments for Latin America, where instant rails like Brazil’s Pix already set expectations.

Renewables Push: El Salvador’s energy regulator (DGEHM) has started the official procedures to authorize solar self-consumption systems, rolling out rules for installation, grid connection, operation, and even surplus injection—an implementation step tied to the 2025 renewable law and SIGET’s 2026 special regulation. Solar Market Access: The framework also covers local, remote, and “virtual power plant” models, signaling a clearer path for companies and households to adopt rooftop generation. Trade & Tariffs: Belize and El Salvador signed a historic partial trade agreement after nearly three years, aiming to expand market access and improve cross-border commerce. Ports Investment: Turkey’s Yilport secured a $1.62B deal to modernize and jointly operate El Salvador’s Acajutla and La Unión ports under a 50-year concession, targeting capacity growth and reviving La Unión. Crypto Payments: Bitget Wallet’s COO argued stablecoins can help unify cross-border payments in Latin America, where instant rails like Brazil’s Pix already set expectations. Migration Policy Shock: U.S. TPS terminations are again in the spotlight, with New York Gov. Kathy Hochul warning abrupt changes could disrupt healthcare and other essential services.

Stablecoin Audit: Tether, based in El Salvador, says KPMG has issued an unqualified audit opinion on its 2025 financial statements and even counted gold bars—another step toward credibility for USDT’s reserve claims. Crypto Regulation Debate: In the US, the CLARITY Act’s odds have reportedly fallen to 10% as lawmakers face a tight schedule, with regulators like the SEC/CFTC preparing fallback rules. Trade & Market Access: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, giving selected Belizean goods preferential access to the Salvadoran market and aiming to boost investment. Local Growth & Food Supply: El Salvador opened a new Usulután wholesale market with modern facilities to improve food distribution. Tourism Push: Tahmek (Yucatán) expects up to 20,000 visitors for its 2026 Mayan Paper Balloon Festival, with El Salvador among the international delegations—an example of regional tourism-linked trade opportunities.

Colombia-US Trade Pressure: Colombia’s new President Abelardo de la Espriella asked Donald Trump to temporarily suspend higher U.S. tariffs on Colombian goods, saying businesses are under strain after the 7.4 earthquake that killed nearly 300 and destroyed about 13,000 homes. Regional Security-Trade Link: The same political shift in Colombia—tough-on-crime and closer alignment with Washington—comes as Latin America’s right-wing governments deepen ties with Israel and push stronger security cooperation. El Salvador Dollarization Context: A roundup on countries without their own national currency highlights El Salvador’s 2001 switch to the U.S. dollar, noting the stability benefits but also the limits on independent monetary policy. Stablecoin Audit Watch: Tether’s full 2025 audit by KPMG U.S. is reported as a major milestone for the stablecoin issuer based in El Salvador, with reserves and liabilities audited under U.S. accounting standards. Local Business & Trade: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, granting preferential access for selected Belizean products to the Salvadoran market.

Trade & Diplomacy: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, giving selected Belizean goods preferential access to the Salvadoran market and setting up a bilateral trade and investment promotion group. Public Security & Healthcare Investment: Mexican healthcare chain 50 Doctors plans to expand into El Salvador after meeting President Nayib Bukele, aiming to bring its hospital model, tech, and specialized services to the local market. Crypto & Finance: Tether, based in El Salvador, says KPMG completed its first full audit of 2025 financial statements, including a physical count of gold bars, with reserves exceeding liabilities by $6.814B at year-end 2025. Regional Geopolitics: Colombia’s new president asked Trump to temporarily suspend tariffs hitting Colombian products as the country faces earthquake fallout, while Colombia also moves closer to the U.S. “Shield of the Americas” anti-cartel coalition. Disaster Response: Colombia’s earthquake recovery continues as the search window shrinks, with Pope Leo XIV sending €100,000 in relief and the U.S. deploying a disaster assistance team.

Central America Trade: Belize and El Salvador signed a Partial Scope Agreement on Aug. 13 after nearly three years of talks, giving selected Belizean goods preferential access to the Salvadoran market and setting up a bilateral trade and investment promotion group. El Salvador Growth & Business Climate: El Salvador posted the fastest Central America economic growth in May at 5.39% y/y, led by construction (+9.7%), while tax enforcement and electronic invoicing pushed tax revenue to 22.1% of GDP in 2025, the region’s highest. Infrastructure for Commerce: El Salvador opened a modernized Usulután Wholesale Market with cold storage, docks, and improved logistics to expand food distribution. Digital Government & Environment: The government rolled out SIMACC, an AI-enabled system to streamline environmental assessments and water/climate monitoring. Healthcare Investment: Mexican hospital chain 50 Doctors plans to expand into El Salvador, presenting projects to President Nayib Bukele. Regional Security Watch: Colombia’s new president Abelardo “El Tigre” de la Espriella asked the U.S. for military help against drug cartels and joined Trump’s “Shield of the Americas” coalition, echoing El Salvador-style prison plans. Humanitarian Relief: Pope Leo XIV sent €100,000 to support Colombia earthquake recovery as the death toll and missing persons remain under pressure.