El Salvador manages debt obligations amid widening trade deficit

El Salvador is facing a widening trade deficit alongside efforts by the Ministry of Finance to maintain debt obligations. According to Vice Minister of Finance Luis Enrique Sánchez, the country has met all debt maturities for 2023 and 2025 through liability management operations, including bond buybacks and a debt-for-nature swap that saved $350 million. The primary balance is reported to have risen to 1.9% of GDP in 2025.

However, economic data indicates a worsening trade imbalance. While exports grew by only 8.8% between 2019 and 2025, imports surged by 54%, causing the trade deficit to double from $5.699 billion to $11.420 billion. This imbalance is largely sustained by family remittances, which reached nearly $10 billion in 2025. Analysts warn that if remittance growth slows due to external factors, such as U.S. anti-migration policies, the country could face challenges in financing essential imports like food and machinery.