In recent years, El Salvador has suffered from low growth, high and rising public debt, political polarization, and sovereign financial strains. A downward revision of nominal GDP, due to the rebasing of the national accounts, increased the 2017 debt-to-GDP ratio from 63 to 71 percent. The country has pursued a strategy to address the growth and fiscal problems through (i) pro-growth measures and (ii) gradual fiscal adjustment combined with a recent pension reform, which was facilitated by an improvement in collaboration across the political spectrum. The recent decision by the U.S. administration to end the temporary protection status (TPS) for Salvadoran immigrants and further restrictive immigration policies pose risks to remittances’ inflows and growth going forward. Presidential elections are scheduled for early-2019.