Commodities - El Salvador

El Salvador

The nominal value in the Commodities market is projected to reach US$46.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.07% resulting in a projected total amount of US$59.94bn by 2029.
The average price per contract in the Commodities market amounts to US$0.10 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 501.40k by 2029.

Market

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Analyst Opinion

El Salvador, a country known for its rich cultural heritage and stunning landscapes, is experiencing notable developments in its Commodities market. Customer preferences in El Salvador are shifting towards a more diversified investment portfolio, with an increasing interest in Commodities as a financial instrument.

Investors are looking for alternative ways to hedge risks and maximize returns, driving the demand for Commodities in the market. Trends in the Commodities market in El Salvador reflect a growing awareness among investors about the potential benefits of including Commodities in their investment strategies. As global market volatility continues to impact traditional asset classes, more investors are turning to Commodities as a way to diversify their portfolios and mitigate risk.

Local special circumstances, such as limited access to certain financial products and a relatively small but growing investor base, are shaping the development of the Commodities market in El Salvador. This presents both opportunities and challenges for market participants looking to capitalize on the increasing demand for Commodities in the country. Underlying macroeconomic factors, including inflation rates, interest rates, and currency fluctuations, play a significant role in driving the growth of the Commodities market in El Salvador.

As investors seek ways to protect their wealth and navigate uncertain economic conditions, Commodities offer a unique investment opportunity that aligns with their risk management objectives.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.