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ECONOMIC WOES

A firebrand politician who often spars with foreign leaders and critics on social media, Bukele came to power in 2019 trouncing traditional parties with a vow to eliminate gang violence and rejuvenate a stagnant economy.

He used his New Ideas party’s supermajority in the legislative assembly to pack the courts with loyalists and overhaul state institutions, solidifying his control of key parts of the government. He also championed the introduction of Bitcoin as legal tender, drawing criticism from the International Monetary Fund (IMF).

El Salvador’s Supreme Electoral Tribunal last year permitted him to run for a second term even though the country’s constitution prohibits it. Opponents fear Bukele will seek to rule for life, following President Daniel Ortega from next-door Nicaragua.

“Everyone knows it is unconstitutional to re-elect the president but what people want is security. They don’t care if it is unconstitutional, they just want to feel safe,” said Josue Galdamez, 39, a businessman and trader who supported Bukele because of his crusade against gangs.

When asked on Sunday by reporters if he planned to reform the constitution to include indefinite re-election, Bukele said he “didn’t think a constitutional reform would be necessary,” but did not directly answer questions on whether he would try to run for a third term.

The Chinese Embassy in San Salvador in a post on X congratulated Bukele and his party “for the historic victory in these elections.”

Rights groups have said El Salvador’s democracy is under attack. Bukele has taken such concerns in stride, at one point changing his profile on X to say: “World’s coolest dictator.”

Bukele’s biggest challenge in his second term is likely to be the economy, Central America’s slowest growing during his time in power. More than a quarter of Salvadorans live in poverty.

Extreme poverty has doubled and private investment has tumbled under Bukele. There has not been much momentum on his highly publicized plans for Bitcoin City, a tax-free crypto haven powered by geothermal energy from a volcano.

The IMF, which is negotiating a $1.3 billion bailout with El Salvador, in late 2023 described the country’s fiscal situation as “fragile.”

(Reporting by Nelson Renteria and Sarah Kinosian; Additional reporting by Diego Ore; Writing by Drazen Jorgic and Sarah Kinosian; Editing by Will Dunham, Chizu Nomiyama, Nick Zieminski and Sonali Paul)