El Salvador’s President Nayib Bukele was sworn in for a second term on Saturday, focusing on the economy and asking citizens for “unconditional support” as the government prescribes “bitter medicine” to improve financial stability.
During the inauguration at the National Palace in San Salvador, the 42-year-old president took the oath of office in front of a crowd of supporters. Bukele is set to govern for another five years with near-total control of parliament and other state institutions after his New Ideas party’s significant victory in legislative polls.
Bukele compared his government to a doctor and the country to a sick patient, urging Salvadorans to defend his administration’s economic decisions “tooth and nail” and “without hesitation.” The president’s focus is now on economic recovery, with challenges including high government debt, fast-rising prices, and a poverty rate exceeding 27 percent.
Economic Criticism and Popularity
Experts warn that Bukele’s extended honeymoon with voters may be nearing its end as economic concerns overtake safety issues. Despite high approval ratings due to his anti-gang initiatives, the economic outlook remains troubling. Public debt has risen to over $30 billion, or 84 percent of GDP, and growth is forecast to slow to three percent this year from 3.5 percent in 2023.
In a bid to revitalize El Salvador’s dollarized, remittance-reliant economy, Bukele made bitcoin legal tender in 2021, a global first. He invested an undisclosed amount of taxpayer money in the cryptocurrency despite warnings about its volatility. Since then, bitcoin’s value has fluctuated wildly, dropping as low as $16,000 before reaching a record high of $73,797 in March.
Future Economic Plans
The president’s second term will likely focus on fulfilling his promise of a “period of prosperity” for El Salvador. The legislature’s approval of a reform making it easier for him to push through constitutional changes could help implement these economic strategies more effectively. However, addressing the public debt, inflation, and poverty will be critical for sustaining long-term growth and stability in the country.
