The International Monetary Fund projects that El Salvador’s GDP will grow by 4.5% in 2026. This follows a 3.9% expansion in 2025, which exceeded initial expectations. In the second quarter of 2026, the economy grew by 5.1% year-over-year, with total output reaching $10 060.6 million.
The construction sector showed significant activity, rising by 11.2% in the second quarter of 2026. The IMF attributes this economic expansion to increased investment, higher private consumption, growth in tourism, and significant capital inflows, alongside government macroeconomic policy decisions.
On October 1, 2026, the IMF Executive Board approved a disbursement of approximately $138–140 million to support fiscal and structural reforms. This payment is part of a larger $1.4 billion Extended Fund Facility program established in February 2025.
The program sets specific fiscal targets, including a primary surplus of 3.7% of GDP by 2027 and a reduction of public debt to 80% of GDP by 2030. The IMF also noted improvements in security, citing a decline in the homicide rate from 54 per 100 000 people in 2018 to 1.8 in 2024.
Despite a breach of performance criteria related to Bitcoin accumulation, the IMF granted El Salvador a waiver. This decision allowed the country to continue receiving funding under the existing loan agreement without halting the program.
