El Salvador is gaining economic momentum as improved security, rising investor confidence and ongoing fiscal reforms contribute to stronger-than-expected growth, according to the International Monetary Fund (IMF).
The country’s economic outlook continues to show signs of improvement as measures aimed at reducing macroeconomic imbalances begin to translate into stronger growth and greater confidence among investors.
The IMF has highlighted the connection between El Salvador’s improved security environment and its economic performance, noting that stronger investment- particularly in construction- has helped support an expansion that has exceeded earlier expectations.
The Fund has also recognized progress in fiscal consolidation, with efforts to reduce the deficit while advancing structural reforms designed to strengthen financial stability, governance and the efficiency of public spending.
President Nayib Bukele shared the IMF’s latest message on social media with the phrase “Poco a poco, y luego de repente…”, signaling the government’s view that the gradual implementation of economic reforms could lead to more visible results over time.
The IMF previously projected real GDP growth of around 4%, citing stronger confidence, record remittances and buoyant investment as key drivers of the Salvadoran economy.
With security conditions continuing to support economic activity and investor sentiment, El Salvador is positioning itself for stronger and more sustainable economic growth, reinforcing its broader strategy of attracting investment and strengthening the national economy.