El Salvador

BCR data show net foreign direct investment fell 92% year on year in April–June 2026, to US$9.77 million. Excluding quarters with net outflows, that is the lowest figure since 2019, although Q1 brought in US$216 million. The gap between strong growth and weak inflows suggests foreign investors are still cautious, despite the government's promotion efforts.

The Rio Times (citing BCR and Diario El Mundo) · 2026-09-30

The investment agency Invest said US$503.8 million of corporate expansions, projected to create about 2,246 jobs, had been authorized under the Investment Expansion Promotion Law, which offers income-tax credits of 10–30%. A legislative committee approved changes that cut the required operating history from 10 to 5 years and add benefits for groups investing at least US$75 million, making it easier for recently arrived foreign firms to qualify.

El Salvador in English · 2026-09-06

The US State Department's 2026 Investment Climate Statement lists recent reforms that matter to foreign firms. They include loosening majority-ownership rules for banks, wider incentives under the International Services and Free Trade Zones laws, and a new anti-money-laundering law. It also says the January 2026 US–El Salvador Agreement on Reciprocal Trade lowers trade barriers, which helps exporters producing in El Salvador for the US market.

U.S. Department of State · 2026-09-28

In its review, the IMF praised the handover of majority control of the state bitcoin wallet Chivo to a private operator. It asked for the remaining public crypto exposure to be removed, more disclosure of public crypto holdings and stronger anti-money-laundering rules. Crypto and fintech entrants should expect tighter licensing and oversight rather than looser rules.

International Monetary Fund · 2026-10-01

The central bank (BCR) reported that the economy grew 5.1% in the second quarter of 2026, and the bank now forecasts full-year growth of 4.5–5%, up from 3–3.5% earlier. Construction, tourism, remittances and private investment are driving growth, which supports demand for firms selling to consumers and to the building sector.

Banco Central de Reserva de El Salvador · 2026-09-30

On 1 October the IMF Executive Board completed the combined second and third reviews of El Salvador's US$1.4 billion Extended Fund Facility, releasing about US$138 million and waiving some missed targets. Further support depends on a larger primary surplus, a pension reform in 2027 and ending the state's bitcoin exposure, so entrants should expect continued fiscal tightening and possible tax-collection measures.

International Monetary Fund · 2026-10-01

The Finance Ministry sent the Assembly a 2027 budget of US$12,421 million, 17.7% more than in 2026, with a US$515 million financing gap. The government has asked for authority to issue up to US$515 million in tax-exempt debt on domestic or international markets. Spending on subsidies and infrastructure may create public-procurement opportunities, but the growth in spending sits uneasily with the consolidation path agreed with the IMF.

Infobae · 2026-10-07

On 23 September the Legislative Assembly approved the 55th monthly extension of the state of exception, by 57 of 60 votes. The extension runs to 27 October 2026, and the government reports 93,162 arrests since 2022. Lower crime has improved operating conditions, but suspended due-process guarantees and the concentration of power in the executive remain governance and reputational risks for entrants.

The Rio Times · 2026-09-26