- El Salvador reduces public debt from 95% of GDP to 59% through strict fiscal management and bond refinancing.
- Economic growth of 19% from 2021 to 2023 accompanies a record labor participation rate of 64.4%.
El Salvador, under President Nayib Bukele’s leadership, has been analyzed by VanEck as an emerging model of economic innovation and resilience in Latin America.
According to VanEck, the nation has reduced its public debt from 95% of GDP in 2020 to 59%, attributing this reduction to stringent fiscal management and the refinancing of sovereign bonds.
Hooah! pic.twitter.com/2KHyoXR07k
— Nayib Bukele (@nayibbukele) November 28, 2024
This fiscal consolidation has coincided with an economic expansion of 19% from 2021 to 2023 and a labor participation rate increase to 64.4%.
The report also highlights a significant decrease in homicide rates, from 51 per 100,000 inhabitants in 2018 to 2.4 in 2023, which has improved the investment climate. However, VanEck emphasizes the need to assess the sustainability of these improvements over the long term.
How El Salvador Became Latin America's Comeback Story: New VanEck Research https://t.co/mygU0TbTJs
— Nayib Bukele (@nayibbukele) November 25, 2024
Focusing on El Salvador’s cryptocurrency initiatives, such as the “Volcano Bonds” and plans for a “Bitcoin City,” the report suggests that their success will depend on acceptance by international financial markets and the government’s ability to manage risks.
These projects are part of a broader strategy to utilize blockchain technology in both public and private sectors, supporting the issuance of the digital currency “Drex.”
Regarding energy policy, the report notes El Salvador’s efforts to diversify its energy sources and enhance its attractiveness as a technology hub. The country has an installed capacity of 2.5 GW, with further expansions planned in geothermal energy generation, aiming to become a prime location for data centers and artificial intelligence initiatives.
VanEck’s analysis concludes that El Salvador offers unique investment opportunities within emerging markets but cautions that optimistic projections should be carefully considered.
Long-term success will rely on maintaining fiscal stability, gaining international confidence, and effectively implementing its technological vision within a robust regulatory framework.
Bitcoin (BTC) is currently trading at $96,407 USD, reflecting a daily increase of 0.45%. Over the past month, Bitcoin has surged by 37.79%, and its year-to-date performance boasts an impressive gain of 127.98%.
Despite a recent correction of approximately 7% from its all-time high of $99,800 USD, Bitcoin remains close to breaking the key psychological resistance at $100,000 USD.
Key Levels:
- Resistance Levels: Immediate resistance is observed at $93,500 USD, with further barriers at $94,800 USD and $95,750 USD.
- Support Levels: Strong support lies at $91,800 USD and $90,500 USD, where buyers are expected to re-enter if selling pressure intensifies.
Recent Developments:
- Bitcoin recently marked a new all-time high (ATH) of $99,645 USD, fueled by bullish market sentiment and increased institutional demand.
- The total cryptocurrency market capitalization reached $3.36 trillion USD, further showcasing the strength of the ongoing bull run.
Technical Insights:
While Bitcoin’s recent rally highlights strong momentum, analysts caution about a potential 30% correction before attempting to breach the $100,000 USD barrier. The current levels suggest consolidation as Bitcoin tests resistance zones, with a need for increased volume to confirm further upward movement.
Long-term indicators remain bullish, but short-term volatility could provide opportunities for both buyers and sellers.
Bitcoin’s continued dominance reflects its role as the leading cryptocurrency, maintaining robust liquidity and investor interest. The outcome of its test against $100,000 will likely define the next phase of its trend.
