The International Monetary Fund (IMF) has praised El Salvador for its strong economic growth, even as it continues to question the country’s Bitcoin policy.

The IMF says the economy is growing faster-than-expected, with growth close to 4% this year. At the same time, talks are still ongoing about how El Salvador manages bitcoin and what the IMF considers “the risks” linked to it.

In its latest statement, the IMF said El Salvador’s economy is improving because of higher investor confidence, record remittances from Salvadorans living abroad, and increased investment.

The Fund said the country’s economy is “expanding at a faster than anticipated pace” and added that growth prospects for next year are also positive.

Real GDP growth is projected to reach around 4% this year, with “very good prospects for next year,” according to the Fund.

Recent economic data backs up this assessment. El Salvador’s economy grew 5.1% in the third quarter of 2025, after growing 2.4% and 4.1% in the first two quarters. This growth has been supported by better security conditions, a stronger financial system, and rising public and private investment, especially in construction projects.

Remittances continue to play a key role in El Salvador’s economy. Money sent home by Salvadorans abroad makes up nearly one-quarter of the country’s GDP. Record inflows have helped families spend more, improved confidence in the economy, and supported financial stability.

The IMF also praised the government’s efforts to control public finances. According to the Fund, El Salvador is on track to meet its budget goals for 2025. The recently approved 2026 budget aims to further reduce the deficit while increasing social spending.

“These efforts are supporting reserve accumulation and a reduction in domestic borrowing in line with program targets,” the IMF said in its official staff statement.

Beyond short-term finances, the IMF highlighted progress on important reforms. These include publishing a pension study, adopting a medium-term fiscal plan, and strengthening banking rules.

El Salvador has also approved new financial stability measures and adopted Basel III standards.

Basel III standards are international banking rules designed to make banks safer and more resilient by requiring them to hold more and better-quality capital, maintain sufficient liquidity, and limit excessive risk-taking.

In addition, a new anti-money laundering law has brought the country closer to international standards.

Despite this positive assessment, Bitcoin remains a major point of disagreement. El Salvador became the first country in the world to adopt bitcoin as legal tender in 2021.

President Nayib Bukele promoted Bitcoin as a way to increase financial inclusion, reduce remittance costs, and strengthen economic independence. However, the IMF warned that Bitcoin could create financial and fiscal risks.

As part of a $1.4 billion loan agreement under the IMF’s Extended Fund Facility program, El Salvador agreed to stop using government and fiscal funds to buy more bitcoin and to sell its government-run Chivo digital wallet.

The IMF said that “negotiations for the sale of the government e-wallet Chivo are well advanced,” and that discussions on Bitcoin continue with a focus on transparency and risk reduction.

However, blockchain data tells a more complex story. The country’s own Bitcoin Office and independent analytics firm Arkham both report that El Salvador continues to buy bitcoin daily and now holds about 7,508 BTC.

IMF officials have questioned these claims, saying some changes may be due to wallet restructuring rather than new purchases. President Bukele has strongly denied that bitcoin purchases have stopped.

In a public statement earlier this year, he said, “No, it’s not stopping,” making clear that his government remains committed to Bitcoin despite IMF pressure.

President Bukele shared the IMF’s statement on X, adding: “Gradually, then suddenly.”