The economy of El Salvador in 2025

The government in El Salvador is trying to address years of lackluster macroeconomic performance. Despite all the publicity surrounding tourism growth and Bitcoin initiatives, figures released by El Salvador's Central Reserve Bank show that annual economic growth in El Salvador for 2024 was a very modest 2.6%. Recently Salvador president Nayib Bukele posted on X a plan to infuse liquidity into the Salvadoran economy by advancing payments to medium, small and micro businesses and by paying down government debt held by Salvadoran banks. The funds come from the recently approved loan facility of the International Monetary Fund. It is hoped that this will kickstart economic activity at the local level. Fitch Ratings described the level to which public debt has climbed during the Bukele administration: El Salvador’s public debt, which we estimate at 87.6% of GDP in 2024, is well above the ratings peer median (2024: 50.3%) and is a key sovereign rating weakness...