President Bukele has consolidated power through his party’s 2024 supermajority, creating a de facto one-party state. The state of emergency introduced in 2022 remains in place and has led to widespread human rights violations and arbitrary arrests, resulting in the world’s highest incarceration rate. The political climate is increasingly hostile to dissent, while the judiciary and legislature are dominated by Bukele loyalists. The electoral tribunal approved his re-election despite constitutional prohibitions.
El Salvador’s fiscal situation remains precarious, with high deficits and rising debt. An IMF loan secured in early 2025 eased short-term pressures. Economic growth is moderate and highly dependent on remittances.
Government strategies lack consultation and long-term planning and often reflect short-term political considerations. The administration prioritizes competitiveness and investment in tourism and public infrastructure rather than human capital. Infrastructure projects are not part of a coherent strategy, and tourism remains limited. Bitcoin, adopted in 2021, failed to gain traction and was quietly abolished in early 2025 due to IMF pressure.
