The International Monetary Fund has completed El Salvador’s second and third reviews under its Extended Fund Facility, unlocking an immediate US$138 million disbursement and highlighting stronger-than-expected economic performance.
According to the IMF, economic activity has exceeded expectations amid sustained improvements in security and investor confidence. Real GDP growth is projected at 4.5% for 2026, following estimated growth of 3.9% in 2025, while gross international reserves are projected to reach US$5.35 billion this year. (IMF)
Fiscal consolidation has also advanced, with the nonfinancial public sector’s primary balance projected to reach 2.9% of GDP in 2026. The IMF reported that liquidity and reserve targets were comfortably met, while reforms have continued in financial-sector resilience, fiscal transparency, governance and anti-money-laundering measures.
“El Salvador’s economic program … has been delivering tangible benefits,” said IMF First Deputy Managing Director Dan Katz, pointing to stronger growth, improved social outcomes, stronger fiscal and external buffers, and markedly lower sovereign spreads. (IMF)
Extract: The IMF approved El Salvador’s latest program reviews, unlocking US$138 million as growth, reserves and fiscal indicators show continued improvement.