El Salvador’s economy continues to perform strongly, according to the International Monetary Fund (IMF), which has highlighted sustained improvements in security and rising investor confidence as key factors supporting economic activity.
In its latest assessment published October 1, 2026, the IMF Executive Board concluded the second and third reviews of El Salvador’s Extended Fund Facility program, noting that economic activity has exceeded expectations while the country continues addressing macroeconomic imbalances.
The Fund reported progress in several areas, including fiscal consolidation, stronger international reserve and liquidity buffers, financial-sector reforms, fiscal transparency, and governance measures. It also noted that sovereign spreads have declined markedly and that real GDP growth has surpassed previous expectations.
The latest review also unlocks an immediate disbursement of approximately $138 million, as part of the 40-month Extended Fund Facility arrangement approved for El Salvador in February 2025, with total access of approximately $1.4 billion.
The IMF nevertheless emphasized that continued progress will depend on decisive implementation of the economic program, including further fiscal consolidation, stronger governance and transparency, and reforms aimed at maintaining macroeconomic stability.
The assessment places El Salvador’s economic growth, improved security environment and strengthening investor confidence at the center of the country’s current economic performance, while underscoring the importance of sustaining the reform process to support durable and inclusive growth.