Economy - overview In 1997 the government emphasized a fixed exchange rate, along with conservative monetary and fiscal policies to promote foreign investment. Inflation fell to an unprecedented low of 2%. Exports reached a record level and were the main engine of growth. Productivity in other sectors remained weaker, however. For the last few years, El Salvador has experienced sizable deficits in both its trade and its fiscal accounts. The trade deficit has been offset by remittances from the large number of Salvadorans living abroad and from external aid. The deficit is expected to increase in 1998 as imports continue to rise. San Salvador is stepping up its privatization efforts in 1998 to increase revenues. Late in 1997 the legislative assembly approved a privatization law that will facilitate the sale of the state-owned telephone company sometime in 1998. The government also plans to privatize pension funds later in the year.

GDP purchasing power parity - $17.8 billion (1997 est.)

GDP - real growth rate 4% (1997 est.)

GDP - per capita purchasing power parity - $3,000 (1997 est.)

GDP - composition by sector
agriculture: 15%
industry: 24%
services: 61% (1997 est.)

Inflation rate - consumer price index 2% (1997)

Labor force
total: 2.26 million (1997 est.)
by occupation: agriculture 40%, commerce 16%, manufacturing 15%, government 13%, financial services 9%, transportation 6%, other 1%

Unemployment rate 7.7% (1997 est.)

Budget
revenues: $1.75 billion
expenditures: $1.82 billion, including capital expenditures of $317 million (1997 est.)

Industries food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals

Industrial production growth rate 7% (1997 est.)

Electricity - capacity 900,000 kW (1996)

Electricity - production 3.5 billion kWh (1997)

Electricity - consumption per capita 603 kWh (1997 est.)

Agriculture - products coffee, sugarcane, corn, rice, beans, oilseed, cotton, sorghum; beef, dairy products; shrimp

Exports
total value: $1.96 billion (f.o.b., 1997 est.)
commodities: coffee, sugar; shrimp; textiles
partners: US, Guatemala, Germany, Costa Rica, Honduras

Imports
total value: $3.5 billion (c.i.f., 1997 est.)
commodities: raw materials, consumer goods, capital goods, fuels
partners: US, Guatemala, Mexico, Panama, Venezuela, Japan

Debt - external $2.6 billion (yearend 1997)

Economic aid
recipient: ODA, $763 million (1996)
note: US has committed $280 million in economic assistance to El Salvador for 1995-97 (excludes military aid)

Currency 1 Salvadoran colon (C) = 100 centavos

Exchange rates Salvadoran colones (C) per US$1 (end of period) - 8.755 (January 1998-1995), 8.750 (1994), 8.670 (1993)
note: as of 1 June 1990, the rate is based on the average of the buying and selling rates, set on a weekly basis, for official receipts and payments, imports of petroleum, and coffee exports; prior to that date, a system of floating was in effect

Fiscal year calendar year

NOTE: The information regarding El Salvador on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of El Salvador Economy 1998 information contained here. All suggestions for corrections of any errors about El Salvador Economy 1998 should be addressed to the CIA.