El Salvador's Bukele opens new Hospital Rosales as government pursues IMF‑backed fiscal reform

President Nayib Bukele marked the start of his eighth year in office by inaugurating the new Hospital Rosales on 1 June, replacing the customary legislative presentation of his administration's record. The ceremony was presented as a turning point for public health, while Bukele’s government continues to dominate institutions, extend presidential re‑election, and sustain high popular approval despite concerns over human‑rights setbacks and rising public debt.

At the same time, El Salvador is midway through an IMF‑backed fiscal adjustment program that targets a 3.5‑percentage‑point cut to the fiscal deficit relative to GDP between 2025 and 2027. The deficit fell to 3 % of GDP in 2025 and is projected to reach 2.2 % by 2027, prompting Moody’s to raise its sovereign outlook to positive while keeping the B3 rating. The plan includes stronger tax collection, reduced public‑sector hiring and spending cuts, measures that are expected to have social impacts.

Both developments underscore the government's effort to balance ambitious public‑service projects with stringent fiscal consolidation amid ongoing economic challenges.