The Pacific Rim Forum (PRF) is set to make a bold return to El Salvador with its 11th edition on March 26 and 27, 2026. This event is highly anticipated as it brings together significant figures from government, finance, and the private sector. The two-day conference will focus on regional economic issues, investment opportunities, and fiscal policies that play a significant role in economic growth.
In recent years, El Salvador’s economy has shown signs of slow recovery. Economic growth is projected to reach 2.4% in 2026, bouncing back slightly from a downturn. However, challenges like reduced public spending and global economic slowdowns have impacted the pace of growth.
By 2027, growth is expected to improve to 2.9%. The government is working hard to maintain fiscal sustainability, aiming to lower the fiscal deficit from 4.4% of GDP in 2024 to 1.7% by 2027. This is part of a broader strategy to improve the economy’s resilience.
To help support these efforts, international organizations are providing assistance. The International Monetary Fund approved funding to aid the government in its fiscal consolidation efforts, while projects funded by the World Bank are set to promote development in several sectors.
These fiscal policies aim to improve public spending efficiency and attract more investments, essential for economic growth. Remittances from abroad also play a significant role in the economy, helping to support families and offset trade deficits.
Moreover, growth in tourism and exports is projected to stabilize current account deficits. With the PRF returning to El Salvador, participants will have an opportunity to discuss these critical aspects of the country’s economic landscape.
The PRF aims to create a platform for dialogue and collaboration among stakeholders, focusing on strategies that encourage economic growth while promoting sound fiscal policies.
The outcomes of these discussions could have lasting impacts on the future of El Salvador’s economy.
