What Happened to El Salvador?

Since Nayib Bukele's election in 2019, El Salvador has experienced a profound shift in its political and social landscape. Bukele, who rose to power on an anti-corruption platform, quickly moved to consolidate authority, challenging traditional political parties and institutions. His initial focus on public security, particularly the 'Territorial Control Plan,' aimed to dismantle the powerful gangs that had plagued the country for decades, leading to an early reduction in homicide rates.

A pivotal moment came in March 2022, when a surge in gang violence prompted Bukele's government to declare a 'state of exception,' which has been continuously extended and remains in effect as of February 2026. This measure suspended several constitutional rights, allowing for mass arrests without warrants and leading to the detention of over 91,300 suspected gang members by February 2026. While the crackdown has dramatically reduced homicides and extortion, making El Salvador one of the safest countries in the Western Hemisphere by official statistics, it has also drawn severe criticism from human rights organizations. These groups have documented widespread abuses, including arbitrary detentions, enforced disappearances, torture, and deaths in state custody, with thousands of detainees having no apparent gang connections.

In a bold economic move, El Salvador adopted Bitcoin as legal tender in September 2021, becoming the first country to do so. This initiative, championed by Bukele, aimed to boost financial inclusion, attract foreign investment, and reduce remittance costs. Despite initial skepticism and volatility, the government has continued to accumulate Bitcoin, holding approximately 7,517 BTC valued at over $660 million as of December 2025. In January 2026, El Salvador announced it was going 'all-in' on Bitcoin and artificial intelligence (AI) as core components of its national strategy, including plans to utilize geothermal energy for data centers and implement an AI-driven education program nationwide through the Genius Act in collaboration with xAI.

Bukele's political dominance was further solidified by his controversial re-election in February 2024. Despite a constitutional prohibition on immediate re-election, a 2021 Supreme Court decision paved the way for his candidacy. He won by a landslide with 84.65% of the vote, and his Nuevas Ideas party secured a supermajority of 54 out of 60 seats in the Legislative Assembly, following electoral reforms that reduced the number of seats and modified vote distribution. Critics, including lawyers and international observers, viewed these actions as undermining democratic institutions and concentrating power in the executive.

Economically, El Salvador's GDP growth was projected at 2.7% in 2023 and is expected to average 2.5% between 2024-2026. Tourism has emerged as a significant economic driver, with a notable surge in visitors in early 2026, partly attributed to improved safety perceptions and international events. The country has also been working with the International Monetary Fund (IMF) on a loan package, with the IMF acknowledging stronger-than-expected economic growth and easing previous tensions over Bitcoin. However, public debt remains a concern, reaching 76% of GDP in 2023, and fiscal adjustments are underway.

As of March 2026, human rights concerns persist, with reports from Human Rights Watch detailing arbitrary detentions and enforced disappearances of Salvadorans deported from the US. The International Group of Experts for the Investigation of Human Rights Violations (GIPES) also reported in March 2026 that there are reasonable grounds to conclude that crimes against humanity are being committed under the state of exception. In a significant development on March 18, 2026, the Legislative Assembly approved a constitutional reform to introduce life imprisonment for murderers, rapists, and terrorists, further solidifying Bukele's tough-on-crime stance and continuing his pattern of constitutional amendments.