President Nayib Bukele announced that the government’s robust public security measures have successfully undermined the criminal economy in El Salvador without negatively impacting the country’s gross domestic product (GDP). In a recent video shared on X, Bukele revealed that while he anticipated a potential 10% drop in GDP due to these actions, the economy actually grew by 3.5%.
«We agreed to pay the economic cost,» Bukele stated, explaining the decision to confront gang violence head-on through the Territorial Control Plan (PCT) and a state of exception. This strategy has led to significant seizures of property, drugs, weapons, and cash, dismantling various criminal enterprises.
Reflecting on past concerns from multilateral organizations regarding the potential economic fallout from targeting gang members, Bukele noted, “If you remove that layer of the economy suddenly, El Salvador’s GDP will fall.” Contrary to these warnings, the president emphasized that the economy continued to thrive, with growth projected to carry into 2023.
A 2022 study by Global Financial Integrity highlighted El Salvador as the Northern Triangle nation suffering the highest extortion rates prior to the implementation of the Bukele administration’s security measures. The improved security environment has positively influenced sectors like tourism and construction, further contributing to economic growth.
Moreover, the PCT has resulted in a historic decrease in murder rates, positioning El Salvador as the safest country in the Western Hemisphere. As Bukele continues to champion these initiatives, the nation’s security and economic landscape appears to be on a promising upward trajectory.