El Salvador’s economy performs strongly, IMF says, as Bitcoin waiver clears the way for funding

The International Monetary Fund has a verdict on El Salvador’s economy: it is doing well. The fund projects real GDP growth of 4.5% for 2026, following a 2025 that beat expectations. It is also notable that the IMF granted a waiver after the country breached a program condition tied to Bitcoin accumulation. The numbers behind the IMF’s optimism The growth story starts with last year. El Salvador’s economy expanded by 3.9% in 2025, a result the IMF said outstripped what had been expected. The momentum appears to have carried into 2026. In the second quarter, the economy grew 5.1% year-over-year, with output reaching $10,060.6 million. Construction was one of the standout sectors. Activity there rose 11.2% in Q2 2026, part of gains spread across multiple parts of the economy. The IMF pointed to several engines behind the expansion. These include strong investment levels, rising private consumption, large remittance flows from abroad, a revival in tourism, and sizable capital inflows. The fund also credited the government’s macroeconomic policy choices. In its view, those decisions have strengthened El Salvador’s fiscal position and built up its external buffers. A fresh check from Wa...