The gross domestic product (GDP) of El Salvador may grow 10 times during the five years of the new presidency of Nayib Bukele. This forecast was given by ARK Invest CEO Katie Wood.
Thank you @maxkeiser and Stacy for introducing Art Laffer, @dpuellARK, Marc Seal, and me to President Bukele last week. Harnessing #bitcoin and #AI to turbocharge his economic and education reforms, the President could scale El Salvador's GDP 10-fold during his next 5-year term. https://t.co/7vjYwJ8mLe
— Cathie Wood (@CathieDWood) May 28, 2024She noted that this will be facilitated by accelerating economic reforms in the country with the help of bitcoin and artificial intelligence.
Separately, Wood mentioned Bukele's understanding of the Art Laffer curve — the concept implies the existence of an optimal level of taxation at which tax revenues reach a maximum.
In February, the current president won the presidential election, promising to preserve the bitcoin strategy of El Salvador. In September 2021, the country was the first in the world to recognize digital gold as a legal means of payment.
Earlier, the government pointed to the role of cryptocurrency adoption in the state's recovery from the crisis and the growth of tourist flow. The country attracted investments through the launch of the "bitcoin visa of freedom" and announced the issue of $1 billion worth of digital gold-based crypto bonds.
"President Bukele's determination to turn El Salvador into an oasis for the bitcoin and artificial intelligence communities (the two largest economic and technological revolutions in history) is the reason why I believe its real GDP could increase 10 times over the next five years," Wood said after talking with the head of state.
At the same time, she noted that the country's economy starts from a very low level: annual GDP is ~ $30 billion, and monthly per capita income is $450.
Recall that El Salvador independently mined 473.5 BTC in three years, and the state's total reserves in cryptocurrency reached ~5748 BTC.