Overview
El Salvador, the smallest and most densely populated country in Central America, has made notable progress through social and security measures, and economic growth programmes.
Economically, El Salvador faces challenges such as high public debt, slow growth, and reliance on remittances, which make up around 20% of GDP. However, tourism has seen growth and foreign direct investment (FDI) is reportedly increasing substantially in 2025. Exports of goods and services to the EU has also increased post pandemic.
Our partnership
The EU and El Salvador work together to build a fairer, greener and more connected society, aligned with the EU’s Global Gateway strategy. This partnership supports government efforts, civil society engagement and private sector development.
Priorities include advancing the digital transformation to boost innovation, connectivity and skills; supporting the green transition through sustainable infrastructure and climate action; and strengthening governance and human development by promoting social inclusion, education and health.
Team Europe brings together the EU, its Member States and European financial institutions to deliver joint initiatives that foster inclusive growth, greener development and good governance.
For 2021–2024, the EU has allocated €49.5 million in bilateral grant funding for El Salvador, focusing on digital transformation, the green transition and governance. A further €22 million is planned for 2025–2027, complemented by regional programmes and blended investments under Global Gateway.
Partnership documents can be found in the ‘Related documents’ section below.
Our key initiatives
- Digital transition
The EU supports El Salvador’s digital transformation through a comprehensive 360° approach that strengthens digital connectivity, boosts digital skills and promotes an inclusive digital economy. It also promotes actions under the umbrella of the EU- LAC Digital Alliance. Key actions include:
- Supporting connectivity planning and infrastructure to enable services such as telemedicine, online education, industrial and agricultural digitalisation.
- Strengthening the submarine cable landing station and the institutional capacity of the national telecom regulator.
- Improving access to connectivity for public schools and public health centres, including closing the digital skills gap in served areas.
- Enhancing cooperation between the national regulator and regional networks to improve research, education and connectivity.
- Promoting policy dialogue on data protection, artificial intelligence, cybersecurity and security standards and regulation, as well as supporting the use of the European Space Programme for environmental, climate and humanitarian aid monitoring.
- Developing the digital economy by strengthening civil digital registration systems, supporting young people’s employability and skills in cybersecurity and emerging technologies, promoting digitalisation of MSMEs and the informal sector, and improving digital solutions in agriculture and energy.
- Green transition
El Salvador is working to develop sustainable public transport to reduce congestion and improve urban mobility, with technical and financial cooperation from the EU. Initiatives include:
- Financing feasibility and complementary studies for an aerocable line and surface metro in San Salvador.
- Providing technical assistance to strengthen planning and improve land use management for future transport projects.
- Preparing for investments with European and regional partners to support infrastructure construction based on study outcomes.
- Energy
The EU and El Salvador are cooperating also in the field of energy, namely:
- Boosting energy efficiency and providing access to green electricity production
- Developing infrastructure to build and ease regional energy interconnections as part of the regional electricity market initiative.
- Trade and investment
The EU and El Salvador are partnering to promote a more competitive private sector, foster sustainable economic growth and boost trade with Europe. Our common efforts include:
- Promoting circular economy practices in small and medium-sized enterprises, encouraging responsible production and sustainable waste management.
- Supporting business development and entrepreneurship to generate jobs and income, contributing to economic growth and poverty reduction.
- Enhancing climate resilience and sustainable practices in rural areas reliant on coffee production, while promoting green tourism and compliance with environmental standards.
- Encouraging digital services exports to Europe under the EU–Central America Association Agreement.
- Human development, governance and civil society
The EU supports El Salvador in advancing gender equality and women’s empowerment, improving health and social services, strengthening governance and fiscal transparency, enhancing security and crime prevention, and fostering an active civil society. Key actions include:
- Improving laws and services for women and girls, and supporting economic opportunities for women in vulnerable areas.
- Expanding access to sexual and reproductive health and improving maternal and child health.
- Providing education, prevention and psychosocial support to reduce violence and support young people.
- Implementation of productive workshops in public schools as an effective strategy to generate decent employment opportunities, especially for young people and students.
- Enhancing regional cooperation to tackle organised crime and drug trafficking.
- Strengthening public financial management, promoting transparent budgeting and encouraging citizen participation.
- Reinforcing the public investment system for more solid and efficient public investments projects that will enhance living conditions for Salvadorans.
- Supporting civil society to protect human rights, defend the environment and promote community dialogue and inclusion.
- Humanitarian aid
The EU supports El Salvador through disaster preparedness initiatives to protect vulnerable communities and provides emergency assistance in response to sudden natural disasters, migration, flows and violence.
