- The IMF forecasts El Salvador’s GDP progress fee to be 4%, larger than the sooner estimate of two.5%.
- The 2025 main steadiness goal is on monitor, and the 2026 funds with deficit discount has been authorized.
- Gross sales negotiations for the Chivo pockets are progressing and discussions on the Bitcoin challenge proceed.
Worldwide Financial Fund Mission Chief Mr. Torres issued an announcement on December 22, 2025, following consultations with the Salvadoran authorities on the second evaluate of the 40-month Prolonged Fund Facility Settlement. The assertion cited financial efficiency, fiscal targets, and ongoing negotiations over crypto infrastructure.
El Salvador’s financial system is increasing quicker than anticipated, based mostly on improved confidence, report remittances, and funding exercise. This yr’s actual GDP progress fee is predicted to succeed in roughly 4%, and the outlook for 2026 can be good. That is larger than the IMF’s October 2025 forecast for progress of two.5%.
Fiscal consolidation objectives stay on monitor
The authorities preserve fiscal consolidation efforts in direction of reaching the 2025 main steadiness goal. The lately authorized 2026 funds goals to additional scale back the deficit whereas rising social spending. These efforts will assist reserve accumulation and scale back home borrowing in step with program goals.
Structural reform efforts are progressing throughout a number of areas. Actuarial-based analysis has been revealed to assist the anticipated fiscal consolidation in parallel with the medium-term fiscal framework. Monetary stability reform strengthens the authorized framework for financial institution decision, disaster administration and deposit insurance coverage techniques. Basel III laws had been adopted to strengthen liquidity protection and web steady funding necessities.
The Legislative Meeting has authorized a brand new AML/CFT legislation that aligns the authorized framework with worldwide finest practices. This addresses earlier considerations concerning El Salvador’s compliance with international monetary transparency requirements.
In keeping with the assertion, negotiations to promote the government-backed e-wallet “Chivo” are progressing easily. Discussions in regards to the Bitcoin challenge proceed to focus on rising transparency, defending public assets, and mitigating threat. This stays a controversial ingredient within the second evaluate course of.
El Salvador’s efforts to simply accept Bitcoin
Beneath the unique EFF settlement reached in December 2024, El Salvador made acceptance of Bitcoin voluntary for the non-public sector and dedicated to progressively lowering public sector participation in Bitcoin-related actions. The Chivo pockets is the federal government’s main automobile for cryptocurrency operations.
In keeping with the report, El Salvador acquired roughly 1,098 BTC throughout December 2025, regardless of a pledge to cut back public sector involvement in Bitcoin. Negotiations proceed between Salvadoran authorities and IMF officers over the precise phrases of the Tibo sale.
Mr. Torres mentioned he expects to proceed working intently with authorities with the goal of reaching staff-level settlement on all insurance policies and reforms wanted to finish the second evaluate of the EFF program.
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