El Salvador:
Economy

Pages for other countries and territories

Other pages in this profile of El Salvador:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


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

El Salvador: Economy

El Salvador:
Economy