The entity recognizes the continued economic recovery, but warns that potential growth is below the desirable level, debt remains high, and wide financing gaps are projected for 2019 and in the future.
From a statement issued by the IMF:
On May 11, 2018, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with El Salvador.
The institution highlights the progress that has been made in reducing the fiscal deficit and stabilizing the debt, but warns that a greater effort is needed to place the debt on a downward trajectory.
From a statement issued by the International Monetary Fund:
The IMF staff team visited San Salvador during February 5—16 for the 2018 Article IV consultation [1] and held productive discussions with the Salvadoran authorities, parliamentarians, business community, and social partners. The consultation was based on revised National Accounts statistics.
Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.
The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.
Fusades' most recent report points to the loss of 33,000 formal jobs between November 2016 and March this year, the second biggest drop in the last 25 years.
From the report by Fusades:
At the end of 2016 and early in 2017 there is clear deterioration in the country's economic conditions, which was reflected in the loss of 33,110 formal jobs between November 2016 and March 2017 and in the default of public debt in April 2017.
"In the second quarter of 2015 slow economic growth remain and public finances continue to deteriorate, increasing the risk of fiscal unsustainability".
From a report by the Salvadoran Foundation for Development (Fusades) "Economic Situation in Q2 2015":
In the second quarter of 2015, economic growth remains low despite the external positive effect of falling oil prices.
In 2014 the performance of most economic indicators was worse than that of 2013, with continued deterioration in public finances.
From a statement by the Salvadoran Foundation for Economic and Social Development (FUSADES):
In 2014 the performance of most economic indicators was lower than that of 2013, when growth was 1.7%; public finances continue to deteriorate, with a balance of the NFPS debt being 60.3% of GDP at the end of 2014.
According FUSADES in the last three months the Salvadoran economy continued to show signs of advanced deterioration.
From a statement by the Salvadoran Foundation for Economic and Social Development (FUSADES):
In the third quarter of 2014 the Salvadoran society has found opportunities for economic dialogue in order to address the challenges of low growth, unemployment, migration, and growing public debt.
Although improvements have been noted, the region's human resources are still far from achieving the level necessary to sustain competitive economies at the global level.
The Human Capital Index, constructed by the World Economic Forum, provides a long-term focus on how nations are developing their human capital and establishing workforces prepared for the demands of the increasingly competitive global economy.