IMF Staff Country Reports

El Salvador: 2025 Article IV Consultation, First Review Under the Extended Fund Facility, and Request for Waivers of Nonobservance of Performance Criteria, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for El Salvador

July 15, 2025

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International Monetary Fund. Western Hemisphere Dept. "El Salvador: 2025 Article IV Consultation, First Review Under the Extended Fund Facility, and Request for Waivers of Nonobservance of Performance Criteria, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for El Salvador", IMF Staff Country Reports 2025, 190 (2025), accessed July 15, 2025, https://doi.org/10.5089/9798229016209.002

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Summary

El Salvador’s economic expansion continues, amid a reduction in macroeconomic imbalances. However, downside risks have risen as a result of elevated global trade tensions and stricter immigration policies in other countries, although these are partly mitigated by more favorable terms of trade and potential trade diversion effects. Review discussions focused on assessing recent progress and reaching understandings on policies to safeguard macroeconomic stability and further strengthen governance and transparency, while recognizing the more challenging external backdrop.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments, Crime, Economic sectors, External debt, Financial institutions, Financial sector policy and analysis, Financial sector stability, Foreign direct investment, Public debt, Public sector, Securities

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Exports, Financial sector stability, Foreign direct investment, Public sector, Securities

Publication Details