IMF Acknowledges Progress On El Salvador Reforms, Cites Stronger Growth
According to an IMF staff statement released on December 22, 2025, El Salvador has made measurable progress on its reform program and is seeing faster economic growth than earlier expected. The IMF said discussions on the second review of the country’s 40-month Extended Fund Facility program are ongoing as authorities work to meet agreed benchmarks. Growth forecasts were revised upward, and the fund signaled continued financial support tied to further policy steps. IMF Notes Faster Growth Reports note that growth is running above earlier forecasts. The IMF now sees real GDP growth near 4% for 2025. Local data show the economy expanded 5.1% in the third quarter of 2025 compared with the same quarter a year earlier, led by construction and remittance-driven consumption. Remittances and stronger investment flows were cited as key drivers. The fund said higher confidence and improved fiscal numbers have helped create space for short-term rebuilding of reserves. Gradually, then sudd...