El Salvador: 2018 Article IV Consultation-Press Release; Staff Report and Statement by the Executive Director for El Salvador

International Monetary Fund

No 2018/151, IMF Staff Country Reports from International Monetary Fund

Abstract: This 2018 Article IV Consultation highlights that the real GDP of El Salvador grew above potential, at 2.3 percent in 2017, supported by lower oil prices, continued United States (U.S.) recovery, and a surge in remittances. However, El Salvador’s growth continues to lag regional peers. Inflation remained low at 1 percent, anchored by dollarization. In 2018–19, growth is expected to remain above potential at 2.3 percent, reflecting the temporary acceleration of the U.S. growth from the recent U.S. tax reform and higher grant-financed investment. The fiscal deficit would further fall to 2.2 percent of GDP in 2018, as savings from the pension reform kick in, but would rise to 2.7 percent of GDP in 2019.

Keywords: ISCR; CR; government; authorities' effort; deficit; Salvadoran authorities; government's policy; current account; income balance; Pension spending; Public sector; Global; Central America (search for similar items in EconPapers)
Pages: 73
Date: 2018-06-07
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