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EL SALVADOR'S CONSTRUCTION SECTOR GENERATES MORE THAN $1 BILLION IN TAX REVENUE 🇸🇻🏗️ New figures from OPAMSS reveal how construction activity is contributing to public finances, supporting related industries, and reinforcing the sector's role in El Salvador's economic development. El Salvador's construction industry generated $1.02 billion in tax revenue during the first eight months of 2026, according to figures presented by the Office of Planning of the Metropolitan Area of San Salvador (OPAMSS), drawing on consolidated data from the Ministry of Finance's Fiscal Transparency Portal. The figures reflect an industry whose economic significance extends beyond residential towers, commercial developments, and infrastructure projects. Construction is also generating tax revenue, creating demand for suppliers and professional services, and supporting economic activity across multiple sectors. More Than $1 Billion in Tax Contributions Between January and August 2026, activities directly associated with construction generated $1,022.8 million in tax revenue across 68,322 tax records. The analysis covers building construction, civil engineering works, and specialized construction activities, corresponding to economic activity classifications 41, 42, and 43. The Metropolitan Area of San Salvador and the rest of the country's central region accounted for $955.4 million, approximately 93.4% of the reported total. Eastern El Salvador contributed $41.2 million, while the western region generated $26.2 million. These figures highlight the concentration of construction-related tax activity in the country's central economic corridor. An Economic Engine Beyond the Construction Site @COAMSS_OPAMSS also identified $312.8 million in tax revenue associated with a broader selection of construction-related economic activities, covering 55,852 tax records. These include building materials, metal products, commerce, transportation, real estate, architecture, engineering, and machinery rental. The related-activity figures were presented as a separate analysis and should not be treated as an additional amount without establishing whether the categories overlap. For OPAMSS Director Luis Rodríguez, construction’s importance lies in its ability to stimulate economic activity throughout the supply chain. Each project requires materials, transportation, technical expertise, equipment, and specialized services. That demand supports businesses beyond the construction industry itself while contributing to the country’s tax base. @LRodriguez_SV described construction as a strategic activity and a major driver of economic growth, emphasizing its contribution to investment, employment, and public financing. Investment and Economic Growth According to projections from OPAMSS and the Salvadoran Chamber of the Construction Industry (@CASALCOsv), construction investment could reach between $4.5 billion and $7 billion during 2026. These figures are projections rather than completed investment, but they illustrate the scale of activity anticipated by the sector's institutions. Construction has also recorded significant growth. According to Central Reserve Bank figures cited in the report, the sector expanded by 11.2% year over year in the second quarter of 2026. The performance comes amid continued urban development, infrastructure investment, and efforts to modernize metropolitan planning. El Salvador's improved security environment forms part of the broader context in which investors are evaluating new projects. However, the reported tax figures alone do not establish how much of the sector's growth is directly attributable to security improvements. From Private Development to Public Finances The significance of the latest figures extends to the relationship between economic development and government revenue. As construction companies, contractors, and associated businesses generate taxable economic activity, they contribute resources to the public finances that support government spending and investment. Rodríguez emphasized the importance of these revenues in helping finance public works, including schools, hospitals, roads, and other infrastructure. The figures do not indicate that construction-related taxes are specifically earmarked for those projects. Rather, they demonstrate the sector's contribution to the government's overall revenue base. For OPAMSS, sustaining this momentum will require modern metropolitan planning, technically responsible development, and administrative processes capable of accompanying continued investment. Building More Than Infrastructure El Salvador's construction sector is emerging as an important contributor to both economic activity and public revenue. The $1.02 billion recorded through August provides a measurable indication of its fiscal contribution, while projected investment and growth figures point to continued expectations for the industry. Behind every new building, commercial project, or infrastructure development is a wider network of businesses, workers, suppliers, and services participating in the economy. The construction industry is not simply changing El Salvador's physical landscape. It is contributing to the financial and economic foundations supporting the country's development. Source: OPAMSS figures reported by Diario El Salvador, October 10, 2026, based on Ministry of Finance fiscal data; investment projections attributed to OPAMSS and CASALCO. El Salvador on X — Explaining El Salvador to the World.

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