The International Monetary Fund “IMF” Predicts El Salvador’s Economy Will Grow by 1.9% in 2024

By Eddie Galdamez  |  Jan 2nd, 2024
IMF Economic Outlook for El SalvadorIMF Headquarters in Washington DC. Photo by

In its October 2023 World Economic Outlook report, the International Monetary Fund IMF estimated a 1.9% economic growth for El Salvador in 2024, the lowest in Central America.

Our growth projections of 3.0% in 2023 and 2.9% in 2024 show that the resilience to the shocks of the past few years has been remarkable. Yet growth is slow and uneven, with growing divergences. The global economy is limping along, not sprinting.” Pierre-Olivier Gourinchas.

The October 2023 IMF report was created with information collected up to September, so it does not include the impact of the Israel conflict.

IMF’s El Salvador Economic Outlook
2017 2018 2019 2020 2021 2022 2023 2024
2.3 2.4 2.5 -7.9 11.2 2.6 2.2 1.9

The IMF economic prediction for El Salvador is close to the 2% estimated by the Economic Commission for Latin America and the Caribbean (ECLAC).

On the other hand, the Salvadoran Central Reserve Bank (BCR) is more optimistic and expects the country’s economic growth to be between 2.5% and 3% this year.

The World Bank is also more favorable and expects the Salvadoran economy to grow 2.3% this year. The IMF report places El Salvador at the bottom in Central America.

El Salvador is still without agreement with the IMF. El Salvador is seeking a financial deal for about $1.3 Billion. The international organization recently stated that talks continue with the Bukele government on critical areas, among them that El Salvador does not use Bitcoin as currency.