El Salvador: 2016 Article IV Consultation- Press Release; Staff Report; and Statement by the Executive Director for El Salvador

July 1, 2016

Preview Citation

Format: Chicago

El Salvador: 2016 Article IV Consultation- Press Release; Staff Report; and Statement by the Executive Director for El Salvador, (USA: International Monetary Fund, 2016) accessed November 23, 2024

Also available in: español

Summary

This paper focuses on policies to raise growth; underpin fiscal sustainability while enhancing social safety nets; and strengthen financial sector stability, deepening, and inclusiveness. GDP growth has averaged 2 percent during 2000–14, well below the Central American regional average of 4½ percent. While the underlying causes of the low growth are complex, a key channel through which they are expressed appears to be low investment. Given the need to increase growth, revenue-raising measures should be accompanied by cuts in distortionary taxation. Stress tests suggest that financial buffers are adequate to contain most risks. The financial deepening and advancing financial inclusion could have a meaningful impact on both growth and poverty.

Subject: Central banks, Economic sectors, International reserves, National accounts, Public debt, Public sector, Revenue administration

Keywords: Authorities' action, Authority, Banking sector capital adequacy ratio, Central America, CR, Expenditure control measure, Expenditures measure, Global, International reserves, ISCR, Public sector, Salvadoran authorities, Security spending, Spending

Publication Details

Pages:

61
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/208
Stock No:

1SLVEA2016001
ISBN:

9781498342223
ISSN:

1934-7685

Notes

Also Available in Spanish

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