The International Monetary Fund (IMF) has reaffirmed its projection that El Salvador’s economy will grow by 3% in 2025, a notable improvement from its previous estimate of 1.3%. This forecast, which mirrors the IMF’s projection for 2024, highlights the country’s positive economic trajectory, driven by significant investments and a robust tourism sector.

The IMF attributes the expected growth to the execution of large public and private investment projects, which are contributing to the country’s economic dynamism. These developments are further complemented by the surge in tourism, which has become an increasingly important driver of growth.

Financial firm Exor Latin America, in comments to Diario El Salvador, emphasized that the consistency of these projections—maintaining 3% for 2024 and raising expectations for 2025—sends a strong positive signal to international investors. According to Exor, the IMF’s projections align with those of El Salvador’s Central Reserve Bank (BCR) and strengthen investor confidence. «The stability in these forecasts, coupled with significant improvements in security and the growing attractiveness of the country for investment, underscores El Salvador’s enhanced competitiveness in the region,» the firm stated.

Exor also noted that the government’s focus on security improvements and the development of key sectors like tourism has positively impacted the country’s investment climate. These factors have made El Salvador a more appealing destination for foreign direct investment, boosting its credibility in international markets and making it easier to access financing.

Since a sharp economic recovery in 2021, when El Salvador’s GDP grew by 10.3% following the pandemic, the country has experienced consistent growth, with 2.6% in 2022 and 3.5% last year. The IMF’s confidence in the nation’s economic outlook reflects the success of policies aimed at creating a stable and attractive environment for business.

Looking ahead to 2024, the IMF’s 3% growth projection aligns with the BCR’s estimate of 3.5% to 4% growth. BCR President Douglas Rodríguez pointed out that El Salvador’s economic growth has far outpaced the average growth rate of the past three decades, which was around 2%. He credited the country’s newfound economic vigor to President Nayib Bukele’s security policies, which have effectively eliminated the gang violence that once hindered the nation’s development.

As El Salvador continues to improve its economic fundamentals, the IMF’s projections serve as a powerful endorsement, reinforcing confidence in the country’s future growth and stability.