El Salvador's Nayib Bukele Begins Second Term with Focus on Economy After Gang Crackdown

On June 1, El Salvador's President Nayib Bukele was sworn in for his second term, pledging to address the country's economic challenges after a successful campaign to reduce gang violence during his first five years in office.

Bukele, 42, secured a landslide re-election victory in February with over 80% of the vote, despite the country's constitution prohibiting re-election. His administration's crackdown on criminal gangs, which included mass arrests, has made El Salvador significantly safer.

During his first term, Bukele's efforts led to the arrest of over 80,000 suspected gang members, transforming El Salvador from one of the world's deadliest countries to a much safer place. 'Salvadorean society is still sick but it no longer has cancer,' Bukele said, referring to the reduction in gang violence.

However, Bukele now faces the daunting task of rejuvenating the country's stagnant economy. More than a quarter of Salvadorans live in poverty, and unemployment is rising. His ambitious plan for Bitcoin City, a tax-free crypto haven, has failed to gain momentum, and private investment has dwindled.

El Salvador's public debt has skyrocketed to more than $30 billion, or 84% of the country's gross domestic product. Economists warn that the government faces a difficult balancing act to reduce national debt without cutting much-needed social benefits to the country's poorest. 'They could end up generating a critical situation for women and households in rural areas,' said economist Julia Evelyn Martínez.

The swearing-in ceremony took place amid heightened security concerns after police thwarted a bomb threat. Seven people were arrested for plotting to detonate explosives at locations across the country. Notable attendees at the ceremony included Argentina's President Javier Milei and Donald Trump Jr., the son of former U.S. President Donald Trump.

Despite his popularity, Bukele's extended honeymoon with voters may be nearing its end as economic worries overtake safety concerns in the public discourse. 'Now that we have fixed the most urgent thing, which was security, we are going to focus on the important problems, starting with the economy,' Bukele stated.

Bukele's second term will be closely watched as he tackles the complex challenges of economic reform while maintaining the security gains achieved during his first term. The international community and Salvadorans alike are eager to see how his administration will tackle these pressing issues.

Key Takeaways

• El Salvador's President Nayib Bukele sworn in for second term, pledging to address economic challenges.
• Bukele's first term saw significant reduction in gang violence, with over 80,000 arrests.
• El Salvador's economy remains stagnant, with 25% of population living in poverty and rising unemployment.
• Public debt has skyrocketed to $30 billion, or 84% of GDP, posing a significant challenge for Bukele's administration.
• Bukele's second term will focus on economic reform, while maintaining security gains, with the international community watching closely.

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