IMF Highlights Strong Growth and Ongoing Bitcoin Discussions in El Salvador

Quick Breakdown 

• The IMF reports strong economic growth, fiscal consolidation, and structural reforms in El Salvador.
• Negotiations continue on the Chivo e-wallet and the national Bitcoin project to enhance transparency and mitigate risk.
• El Salvador purchases 1,090 BTC, marking the largest single-day buy since Bitcoin adoption in 2021.

The IMF’s Mission Chief for El Salvador, Mr Torres, provided an update following extensive discussions with Salvadoran authorities on the second review of the 40-month Extended Fund Facility (EFF) Arrangement.

Gradually, then suddenly. https://t.co/MWP0avqlDE pic.twitter.com/hYYONaRLcI

— Nayib Bukele (@nayibbukele) December 22, 2025

Economic expansion and fiscal progress

According to Torres, the Salvadoran economy is growing faster than expected, driven by strong investment, record remittances, and rising confidence. Real GDP is projected to reach approximately 4% in 2025, with favourable prospects for 2026. The government’s fiscal consolidation efforts remain on track, with the 2025 primary balance target expected to be met. The recently approved 2026 budget aims to reduce the deficit further while expanding social spending. These measures are supporting reserve accumulation and reducing domestic borrowing, in line with EFF program targets.

Structural reforms are also advancing, including the publication of an actuarial pension study and a Medium-Term Fiscal Framework. Financial stability reforms have strengthened bank resolution, crisis management, and deposit insurance frameworks, while Basel III regulations now enhance liquidity coverage and net stable funding. Additionally, a new AML/CFT law aligns El Salvador’s financial rules with international standards.

Bitcoin and Chivo updates

Torres highlighted that negotiations over the sale of the government’s e-wallet, Chivo, are well advanced. Discussions surrounding the national Bitcoin project continue, focusing on transparency, safeguarding public resources, and mitigating risks.

The IMF stressed ongoing engagement with Salvadoran authorities to reach a staff-level agreement covering all policies and reforms required to complete the second EFF review. The updates signal a combination of macroeconomic growth, fiscal discipline, and careful oversight of the country’s high-profile digital currency initiatives.

In another development, El Salvador’s Bitcoin Office announced the acquisition of 1,090 BTC, valued at approximately $100 million, marking the largest single-day purchase since the country adopted Bitcoin as legal tender in 2021. The purchase occurred during a market dip, signalling the administration’s ongoing confidence in Bitcoin as a strategic national asset.