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      IMF Projects Strong Economic Growth for El Salvador by 2026

      The International Monetary Fund (IMF) has announced a positive outlook for El Salvador's economy, projecting a real GDP growth of 4.5% for 2026. This forecast follows a strong performance in 2025, where the economy grew by 3.9%, surpassing previous expectations. The IMF's assessment comes as part of a staff-level agreement regarding the second and third reviews of the country's 40-month Extended Fund Facility program, which could unlock approximately $140 million pending Board approval.

      Key factors contributing to this economic turnaround include increased private consumption and investment, bolstered by robust remittance flows and a growing tourism sector. Improvements in security have also played a significant role, as a crackdown on gang violence has made the operating environment more stable, encouraging foreign investment.

      In addition to these developments, the Central Reserve Bank has revised its growth forecast for 2026 to a range of 4.5% to 5%, up from an earlier estimate of 3% to 3.5%. This adjustment reflects strong economic activity observed in the first half of the year. Furthermore, the government has shifted the operational control of its Chivo electronic wallet to a private operator, distancing itself from previous practices of using public funds for Bitcoin purchases, which aligns with the fiscal prudence required by the IMF.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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