El Salvador:
Economy

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


Economy - overview	The smallest country in Central America, El Salvador has the third largest economy, but growth has been minimal in recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement, which El Salvador was the first to ratify, has strengthened an already positive export trend. The trade deficit has been offset by annual remittances from Salvadorans living abroad - equivalent to more than 16% of GDP - and external aid. With the adoption of the US dollar as its currency in 2001, El Salvador has 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. 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.
GDP (purchasing power parity)	$33.66 billion (2006 est.)
GDP (official exchange rate)	$15.16 billion (2006 est.)
GDP - real growth rate	4.2% (2006 est.)
GDP - per capita	$4,900 (2006 est.)
GDP - composition by sector	agriculture: 10.1% industry: 29.9% services: 60% (2006 est.)
Labor force	2.875 million (2006 est.)
Labor force - by occupation	agriculture: 17.1% industry: 17.1% services: 65.8% (2003 est.)
Unemployment rate	6% official rate; but the economy has much underemployment (2006 est.)
Population below poverty line	35.2% (2005 est.)
Household income or consumption by percentage share	lowest 10%: 0.7% highest 10%: 38.8% (2002)
Distribution of family income - Gini index	52.4 (2002)
Inflation rate (consumer prices)	4% (2006 est.)
Investment (gross fixed)	16.1% of GDP (2006 est.)
Budget	revenues: $2.82 billion expenditures: $2.94 billion (FY07 est.)
Public debt	41.1% of GDP (2006 est.)
Agriculture - products	coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum; beef, dairy products; shrimp
Industries	food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals
Electricity - production	5.293 billion kWh (2006)
Electricity - consumption	5.204 billion kWh (2006)
Electricity - exports	95.5 million kWh (2006)
Electricity - imports	322 million kWh (2005)
Oil - production	0 bbl/day (2004 est.)
Oil - consumption	43,000 bbl/day (2004 est.)
Oil - exports	NA bbl/day
Oil - imports	NA bbl/day
Oil - proved reserves	0 bbl (1 January 2006)
Natural Gas - production	0 cu m (2005 est.)
Natural Gas - consumption	0 cu m (2005 est.)
Current account balance	$-854.9 million (2006 est.)
Exports	$3.567 billion (2006 est.)
Exports - commodities	offshore assembly exports, coffee, sugar, shrimp, textiles, chemicals, electricity
Exports - partners	US 49.6%, Guatemala 14.4%, Honduras 8.8%, Nicaragua 5% (2006)
Imports	$7.257 billion (2006 est.)
Imports - commodities	raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, electricity
Imports - partners	US 32.2%, Guatemala 9.3%, Mexico 7.4%, Germany 6.3%, China 4.7% (2006)
Reserves of foreign exchange and gold	$1.899 billion (2006 est.)
Debt - external	$7.518 billion (2006 est.)
Economic aid - recipient	$199.4 million of which $55 million from US (2005)
Currency (code)	US dollar (USD)
Exchange rates	the US dollar became El Salvador's currency in 2001
Fiscal year	calendar year

El Salvador: Economy

El Salvador:
Economy