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El Salvador:
Economy

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Economy - overview
Definition
The smallest country in Central America, El Salvador has the third largest economy, but growth has been modest in recent years. Robust growth in non-traditional exports have offset declines in the maquila exports, while remittances and external aid offset the trade deficit from high oil prices and strong import demand for consumer and intermediate goods. El Salvador leads the region in remittances per capita with inflows equivalent to nearly all export income. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement (CAFTA), which El Salvador was the first to ratify, has strengthened an already positive export trend. With the adoption of the US dollar as its currency in 2001, El Salvador lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy. The current government has pursued economic diversification, with some success in promoting textile production, international port services, and tourism through tax incentives. It is committed to opening the economy to trade and investment, and has embarked on a wave of privatizations extending to telecom, electricity distribution, banking, and pension funds. In late 2006, the government and the Millennium Challenge Corporation signed a five-year, $461 million compact to stimulate economic growth and reduce poverty in the country's northern region through investments in education, public services, enterprise development, and transportation infrastructure.
GDP (purchasing power parity)
Definition - World rank and map
$41.65 billion (2007 est.)
GDP (official exchange rate)
Definition
$20.37 billion (2007 est.)
GDP - real growth rate
Definition - World rank and map
4.7% (2007 est.)
GDP - per capita
Definition - World rank and map
$5,800 (2007 est.)
GDP - composition by sector
Definition
agriculture: 9.7%
industry: 27.6%
services: 62.7% (2007 est.)
Labor force
Definition
2.913 million (2007 est.)
Labor force - by occupation
Definition
agriculture: 19%
industry: 23%
services: 58% (2006 est.)
Unemployment rate
Definition - World rank and map
6.2% official rate; but the economy has much underemployment (2007 est.)
Population below poverty line
Definition
30.7% (2006 est.)
Household income or consumption by percentage share
Definition
lowest 10%: 0.7%
highest 10%: 38.8% (2002)
Distribution of family income - Gini index
Definition - World rank and map
52.4 (2002)
Inflation rate (consumer prices)
Definition - World rank and map
3.9% (2007 est.)
Investment (gross fixed)
Definition - World rank and map
14.7% of GDP (2007 est.)
Budget
Definition
revenues: $3.659 billion
expenditures: $3.716 billion (2007 est.)
Public debt
Definition - World rank and map
37.9% of GDP (2007 est.)
Agriculture - products
Definition
coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum; beef, dairy products; shrimp
Industries
Definition
food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals
Industrial production growth rate
Definition - World rank and map
3.4% (2007 est.)
Electricity - production
Definition - World rank and map
5.316 billion kWh (2006)
Electricity - consumption
Definition - World rank and map
5.319 billion kWh (2006)
Electricity - consumption per capita
Definition - World rank and map
752.8 kWh (2006)
Electricity - exports
Definition
111.1 million kWh (2007)
Electricity - imports
Definition
38.6 million kWh (2007)
Oil - production
Definition - World rank and map
0 bbl/day (2005)
Oil - consumption
Definition - World rank and map
43,200 bbl/day (2005 est.)
Oil - consumption per 1,000 people
Definition - World rank and map
6.1 bbl/day (2005 est.)
Oil - exports
Definition - World rank and map
4,963 bbl/day (2006)
Oil - imports
Definition - World rank and map
45,210 bbl/day (2006)
Oil - proved reserves
Definition - World rank and map
0 bbl (1 January 2006 est.)
Natural gas - production
Definition - World rank and map
0 cu m (2005 est.)
Natural gas - consumption
Definition - World rank and map
0 cu m (2005 est.)
Natural gas - consumption per capita
Definition - World rank and map
0 cu m (2005 est.)
Natural gas - exports
Definition - World rank and map
0 cu m (2005 est.)
Natural gas - imports
Definition - World rank and map
0 cu m (2005)
Natural gas - proved reserves
Definition - World rank and map
0 cu m (1 January 2006 est.)
Current account balance
Definition - World rank and map
-$985 million (2007 est.)
Exports
Definition - World rank and map
$3.83 billion (2007 est.)
Exports - commodities
Definition
offshore assembly exports, coffee, sugar, shrimp, textiles, chemicals, electricity
Exports - partners
Definition
US 47.2%, Guatemala 15.4%, Honduras 9.5%, Nicaragua 5.4%, Costa Rica 4.1% (2006)
Imports
Definition - World rank and map
$8.208 billion (2007 est.)
Imports - commodities
Definition
raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, electricity
Imports - partners
Definition
US 30.9%, Guatemala 10.3%, Mexico 8.2%, China 4.7%, Venezuela 4.1% (2006)
Reserves of foreign exchange and gold
Definition - World rank and map
$2.198 billion (31 December 2007 est.)
Debt - external
Definition - World rank and map
$9.574 billion (December 2007)
Stock of direct foreign investment - at home
Definition
$5.352 billion (2007 est.)
Stock of direct foreign investment - abroad
Definition
$239 million (2007 est.)
Market value of publicly traded shares
Definition
$3.623 billion (2005)
Economic aid - recipient
Definition
$267.6 million of which $55 million from US (2005)
Currency (code)
Definition
US dollar (USD)
Exchange rates
Definition
the US dollar became El Salvador's currency in 2001
Fiscal year
Definition
calendar year


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