El Salvador: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for El Salvador

The 2023 Article IV Consultation with El Salvador discusses that despite a series of adverse external shocks, the Salvadoran economy has fared relatively well to date, and is estimated to have grown by 2.8 percent in 2022. The economy is expected to grow by 2.4 percent in 2023, but the outlook is fragile, given the macroeconomic imbalances and a less favorable international environment. Under a baseline of unchanged policies, the outlook is fragile given large macroeconomic imbalances and less favorable external backdrop. Risks are also high and tilted to the downside. Boosting productivity and resilience will require well-planned and tailored investments in human capital and infrastructure, including mitigation and adaptation of the impacts of climate change. Efforts to reduce the cost of doing business and trade should continue. Meanwhile, durable improvements in security will require measures aimed at improving employment opportunities, especially of the young.