International Monetary Fund. Western Hemisphere Dept.
Following elections in late 2025, the new government of President Asfura has affirmed its commitment to the Fund-supported program and decisively resumed reform momentum. Economic developments have remained largely favorable, supported by appropriate fiscal, monetary, and exchange rate policies alongside a supportive external environment in 2025 that fostered a marked improvement in foreign exchange market conditions and the accumulation of international reserves. A changed international environment, however, marked by the oil supply shock, alongside a possible strong El Niño event, poses new risks that require an agile policy response.