Economy - overview El Salvador is a struggling Central American economy which has been suffering from a weak tax collection system, factory closings, the aftermaths of Hurricane Mitch of 1998 and the devastating earthquakes of early 2001, and weak world coffee prices. On the bright side, in recent years inflation has fallen to single digit levels, and total exports have grown substantially. The trade deficit has been offset by remittances (an estimated $1.6 billion in 2000) from Salvadorans living abroad and by external aid. As of 1 January 2001, the US dollar was made legal tender alongside the colon. Growth in 2002 will depend largely on the speed of recovery in the US.

GDP purchasing power parity - $28.4 billion (2001 est.)

GDP - real growth rate 1.4% (2001 est.)

GDP - per capita purchasing power parity - $4,600 (2001 est.)

GDP - composition by sector
agriculture: 10%
industry: 30%
services: 60% (2000)

Population below poverty line 48% (1999 est.)

Household income or consumption by percentage share
lowest 10%: 1.4%
highest 10%: 39.3% (2001)

Distribution of family income - Gini index 50.8 (1997)

Inflation rate (consumer prices) 3.8% (2001 est.)

Labor force 2.35 million (1999)

Labor force - by occupation agriculture 30%, industry 15%, services 55% (1999 est.)

Unemployment rate 10% (2001 est.)

Budget
revenues: $2.1 billion
expenditures: $2.5 billion, including capital expenditures of $NA (2001 est.)

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

Industrial production growth rate 3% (2001 est.)

Electricity - production 3.69 billion kWh (2000)

Electricity - production by source
fossil fuel: 42.3%
hydro: 35.5%
other: 22.2% (2000)
nuclear: 0%

Electricity - consumption 4.07 billion kWh (2000)

Electricity - exports 112 million kWh (2000)

Electricity - imports 750 million kWh (2000)

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

Exports $2.9 billion (2001)

Exports - commodities offshore assembly exports, coffee, sugar, shrimp, textiles, chemicals, electricity

Exports - partners US 65%, Guatemala 11%, Honduras 8%, EU 5% (2000)

Imports $5 billion (2001)

Imports - commodities raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, electricity

Imports - partners US 50%, Guatemala 10%, EU 7%, Mexico 5%, (2000)

Debt - external $4.9 billion (2001 est.)

Economic aid - recipient total $252 million; $57 million from US (1999 est.)

Currency Salvadoran colon (SVC); US dollar (USD)

Currency code SVC; USD

Exchange rates Salvadoran colones per US dollar - 8.750 (fixed since January 2001), 8.755 (fixed rate since 1993)
note: since January 2001 the US dollar has also become legal tender; the exchange rate has been fixed at 8.75 colones per US dollar

Fiscal year calendar year

NOTE: The information regarding El Salvador on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of El Salvador Economy 2002 information contained here. All suggestions for corrections of any errors about El Salvador Economy 2002 should be addressed to the CIA.