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Recently, the IMF released some interesting data. El Salvador's economic growth exceeded expectations, and IMF delegation leader Torres gave a quite positive assessment after an on-site visit.
What exactly did they say? The economy is expanding rapidly, driven mainly by three factors: a rebound in consumer confidence, record-high remittance inflows, and strong investment momentum. The combination of these three factors provides support for economic growth in 2025.
The IMF's latest forecast shows that El Salvador's real GDP growth rate will reach about 4% in 2025, and the outlook for 2026 is also rated as "very good." This is a significant increase from the previous estimate of 2.5%. Moreover, this is not a temporary rebound; the IMF pointed out that the local government is quite determined to consolidate fiscal stability.
Data indicates that El Salvador is expected to meet its primary balance target by the end of 2025, and the recently passed 2026 budget continues to push for deficit reduction. More importantly, these fiscal measures are actually taking effect—foreign exchange reserves are accumulating, and the government's reliance on domestic debt is decreasing. For a Central American country, this shows that policy implementation is still effective.