Bukele’s Economic Relief Measures Drive Deflation and High-Impact Benefits for Salvadorans

Three years after President Nayib Bukele launched a bold package of economic relief measures, El Salvador continues to see tangible results in household savings and macroeconomic stability.

The 11 measures introduced in March 2022 suspended fuel taxes, provided subsidies for gasoline and propane gas, exempted basic food imports, and expanded food access through Agromarkets. These initiatives also included strict monitoring of fuel stations and distribution chains to prevent abusive practices. In January 2025, the Government further expanded relief by covering household water and electricity bills, benefiting more than 95% of Salvadoran homes.

Within the first six months of implementation, the measures generated over $314 million in savings for the population, primarily through subsidies on diesel, gasoline, and propane gas. This relief shielded families from international price shocks while stabilizing the domestic market.

The impact is evident in deflation trends. Consumer prices recorded four consecutive monthly declines in 2025: April (-0.11%), May (-0.21%), June (-0.17%), and July (-0.14%), reflecting the effectiveness of the strategy in protecting purchasing power.

On April 6, 2025, President Bukele announced a new step: a $1 billion liquidity injection (about 2.8% of GDP), supported by an agreement with the IMF. The funds will be directed to early payments for micro, small, and medium enterprises, advances to suppliers, and domestic debt amortization. By using existing foreign-currency resources, the measure avoids inflationary pressure while stimulating consumption, sales, and productive activity in the short term.

From subsidies and Agromarkets to deflation and new liquidity measures, El Salvador’s economic relief strategy continues to deliver high-impact results for families and national stability.