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EconomyEconomy - overview
The smallest country in Central America geographically, El Salvador has the third largest economy in the region. With the global recession in 2009, real GDP contracted by 3.1%. The economy began a slow recovery in 2010 on the back of improved export and remittances figures. Remittances accounted for 17% of GDP in 2011 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify the Dominican Republic-Central American Free Trade Agreement (CAFTA-DR), which has bolstered the export of processed foods, sugar, and ethanol, and supported investment in the apparel sector amid increased Asian competition. El Salvador has promoted an open trade and investment environment and has embarked on a wave of privatizations extending to telecom, electricity distribution, banking, and pension funds. The Salvadoran Government maintained fiscal discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005. Taxes levied by the government include a value added tax (VAT) of 13%, income tax of 30%, excise taxes on alcohol and cigarettes, and import duties. The VAT accounted for about 51.7% of total tax revenues in 2011. Calculated according to the International Monetary Fund (IMF) standards, El Salvador's public external debt in December 2011 was about $12.95 billion or 57.3% of GDP. El Salvador's total public debt includes non-financial public sector debt, financial public sector debt, and central bank debt. In 2006, El Salvador and the Millennium Challenge Corporation (MCC) - a United States Government agency - signed a five-year, $461 million compact to stimulate economic growth and reduce poverty in the country's northern region, the primary conflict zone during the civil war, through investments in education, public services, enterprise development, and transportation infrastructure. In December 2011, the MCC approved El Salvador's eligibility to develop a proposal for a second compact for consideration. Gdp (purchasing power parity) World Ranking: 96
$45.15 billion (2011 est.)
$44.52 billion (2010 est.) $43.9 billion (2009 est.) Note Data are in 2011 US dollars Gdp (official exchange rate)
$22.76 billion (2011 est.)
Gdp - real growth rate World Ranking: 172
1.4% (2011 est.)
1.4% (2010 est.) -3.1% (2009 est.) Gdp - per capita (ppp) World Ranking: 130
$7,600 (2011 est.)
$7,600 (2010 est.) $7,500 (2009 est.) Note Data are in 2011 US dollars Gdp - composition by sector
Agriculture 10.6%
Industry 30% Services 59.3% (2011 est.) Labor force World Ranking: 111
2.577 million (2011 est.)
Labor force - by occupation
Agriculture 21%
Industry 20% Services 58% (2011 est.) Unemployment rate World Ranking: 79
7% (2011 est.)
7.2% (2010 est.) Note Data are official rates; but the economy has much underemployment Population below poverty line
36.5% (2010 est.)
Household income or consumption by percentage share
Lowest 10% 1%
Highest 10% 37% (2009 est.) Distribution of family income - gini index World Ranking: 32
46.9 (2007)
52.5 (2001) Investment (gross fixed) World Ranking: 140
13.5% of GDP (2011 est.)
Budget
Revenues $4.413 billion
Expenditures $5.319 billion (2011 est.) Taxes and other revenues World Ranking: 167
19.4% of GDP (2011 est.)
Budget surplus (+) or deficit (-) World Ranking: 133
-4% of GDP (2011 est.)
Public debt World Ranking: 48
57.3% of GDP (2011 est.)
54.1% of GDP (2010 est.) Inflation rate (consumer prices) World Ranking: 132
5.1% (2011 est.)
1.2% (2010 est.) Commercial bank prime lending rate World Ranking: 124
7% (31 December 2011 est.)
7.62% (31 December 2010 est.) Stock of narrow money World Ranking: 124
$2.386 billion (31 December 2011 est.) $2.433 billion (31 December 2010 est.) Stock of broad money World Ranking: 163
$1.15 billion (31 December 2011 est.) $9.388 billion (31 December 2010 est.) Stock of domestic credit World Ranking: 97
$10.34 billion (31 December 2011 est.) $10.04 billion (31 December 2010 est.) Market value of publicly traded shares World Ranking: 84
$5.474 billion (31 December 2011) $4.227 billion (31 December 2010) $4.432 billion (31 December 2009) Agriculture - products
Coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum; beef, dairy products Industries
Food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals Industrial production growth rate World Ranking: 126
1.8% (2011 est.)
Electricity - production World Ranking: 110
5.728 billion kWh (2011 est.)
Electricity - consumption World Ranking: 111
5.756 billion kWh (2011 est.)
Electricity - exports
101.6 million kWh (2011 est.)
Electricity - imports
215.8 million kWh (2011 est.)
Oil - production World Ranking: 79
15,640 bbl/day (2010 est.)
Oil - consumption World Ranking: 94
57,280 bbl/day (2010 est.)
Oil - exports World Ranking: 108
2,315 bbl/day (2010 est.)
Oil - imports World Ranking: 89
45,060 bbl/day (2010 est.)
Oil - proved reserves World Ranking: 125
0 bbl (1 January 2011 est.)
Natural gas - production World Ranking: 174
0 cu m (2010 est.)
Natural gas - consumption World Ranking: 171
0 cu m (2010 est.)
Natural gas - exports World Ranking: 91
0 cu m (2010 est.)
Natural gas - imports World Ranking: 185
0 cu m (2010 est.)
Natural gas - proved reserves World Ranking: 171
0 cu m (1 January 2011 est.)
Current account balance World Ranking: 126
-$1.205 billion (2011 est.)
-$488.3 million (2010 est.) Exports World Ranking: 115
$5.309 billion (2011 est.)
$4.577 billion (2010 est.) Exports - commodities
Offshore assembly exports, coffee, sugar, textiles and apparel, gold, ethanol, chemicals, electricity, iron and steel manufactures Exports - partners
US 44.6%, Guatemala 13.2%, Honduras 9.8%, Nicaragua 5.1%, Germany 4.1% (2011) Imports World Ranking: 96
$9.75 billion (2011 est.)
$8.189 billion (2010 est.) Imports - commodities
Raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, electricity Imports - partners
US 39.4%, Guatemala 9.9%, Mexico 9%, China 5.2% (2011) Reserves of foreign exchange and gold World Ranking: 112
$2.504 billion (31 December 2011 est.) $2.883 billion (31 December 2010 est.) Debt - external World Ranking: 88
$12.95 billion (31 December 2011 est.) $11.77 billion (31 December 2010 est.) Stock of direct foreign investment - at home World Ranking: 84
$8.41 billion (31 December 2011 est.) $7.76 billion (31 December 2010 est.) Stock of direct foreign investment - abroad World Ranking: 89
$7 million (31 December 2011 est.) $7 million (31 December 2010 est.) Exchange rates
Note
The US dollar is used as a medium of exchange and circulates freely in the economy Fiscal year
Calendar year
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El Salvador (San Salvador):
 
GPS points from El Salvador (San Salvador)
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El Salvador achieved independence from Spain in 1821 and from the Central American Federation in 1839. A 12-year civil war, which cost about 75,000 lives, was brought to a close in 1992 when the government and leftist rebels signed a treaty that provided for military and political reforms.