El Salvador is now safer than France and investment is soaring
El Salvador's homicide rate fell to 1.19 in 2025, below France's. GDP is growing 4% and investment is surging. What lies behind the miracle.
English · Original discussion in Spanish · Published
El Salvador is now safer than France, and the economy is feeling it
El Salvador's homicide rate ended 2025 at 1.19 per 100,000 inhabitants, below that of France or Canada. A country that in 2015 was one of the most violent in the world has drastically reduced crime under President Nayib Bukele, and is now starting to reap economic rewards: the economy grew 4% in 2025, driven by a surge in investment.
Investment soaring and poverty falling
Growth is underpinned by tourism, construction and infrastructure, according to data published at the start of 2026. The Survey of the Banco de Reserva also reveals a notable drop in poverty. The country has now posted two years of growth at nearly twice the average of the past 25 years, economic reports note.
A sustainable model?
Not everything is a fairy tale. Some warn that growing from rock-bottom levels produces misleading figures, and that the concentration on construction and tourism leaves the economy vulnerable. Others respond that security is the foundation of everything: without it there is no investment or prosperity. Doubts about the democratic cost of the hard-line policies remain on the table, but for now the numbers speak for themselves.
While the West flirts with recession, in San Salvador GDP and investment are expected to keep expanding strongly in 2026. The uncomfortable question is whether this model can last without the political price becoming too high.
El Salvador's homicide rate ended 2025 at 1.19 per 100,000 inhabitants, below that of France or Canada. A country that in 2015 was one of the most violent in the world has drastically reduced crime under President Nayib Bukele, and is now starting to reap economic rewards: the economy grew 4% in 2025, driven by a surge in investment.
Investment soaring and poverty falling
Growth is underpinned by tourism, construction and infrastructure, according to data published at the start of 2026. The Survey of the Banco de Reserva also reveals a notable drop in poverty. The country has now posted two years of growth at nearly twice the average of the past 25 years, economic reports note.
A sustainable model?
Not everything is a fairy tale. Some warn that growing from rock-bottom levels produces misleading figures, and that the concentration on construction and tourism leaves the economy vulnerable. Others respond that security is the foundation of everything: without it there is no investment or prosperity. Doubts about the democratic cost of the hard-line policies remain on the table, but for now the numbers speak for themselves.
While the West flirts with recession, in San Salvador GDP and investment are expected to keep expanding strongly in 2026. The uncomfortable question is whether this model can last without the political price becoming too high.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (20 replies).
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