Page last updated on February 20, 2013
Economy - 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 slowed even further during 2010-12. 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. El Salvador's external debt amounts to about one-fourth of GDP. In 2012, El Salvador successfully completed a $461 million compact with the Millennium Challenge Corporation (MCC) - a United States Government agency aimed at stimulating economic growth and reducing 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 program for consideration.
GDP (purchasing power parity):
$45.98 billion (2012 est.)
country comparison to the world: 98
$45.3 billion (2011 est.)
$44.67 billion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$23.99 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
1.5% (2012 est.)
country comparison to the world: 150
1.4% (2011 est.)
1.4% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$7,700 (2012 est.)
country comparison to the world: 132
$7,700 (2011 est.)
$7,600 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 10.5%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
30%
services:
59.4% (2012 est.)
Labor force:
2.593 million (2012 est.)
country comparison to the world: 111
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 21%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
20%
services:
58% (2011 est.)
Unemployment rate:
6.9% (2012 est.)
country comparison to the world: 77
7% (2011 est.)
note:
data are official rates; but the economy has much underemployment
[see also:
Unemployment rate country ranks ]
Population below poverty line:
36.5% (2010 est.)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 1%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%:
37% (2009 est.)
Distribution of family income - Gini index:
46.9 (2007)
country comparison to the world: 31
52.5 (2001)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
14.7% of GDP (2012 est.)
country comparison to the world: 137
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $4.835 billion
[see also: Budget revenues country ranks ]
expenditures:
$5.534 billion (2012 est.)
Taxes and other revenues:
20.2% of GDP (2012 est.)
country comparison to the world: 160
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-2.9% of GDP (2012 est.)
country comparison to the world: 98
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
57.4% of GDP (2012 est.)
country comparison to the world: 50
57.5% of GDP (2011 est.)
note:
El Salvador's total public debt includes non-financial public sector debt, financial public sector debt, and central bank debt.
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
2.4% (2012 est.)
country comparison to the world: 47
5.1% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Commercial bank prime lending rate:
6.2% (31 December 2012 est.)
country comparison to the world: 143
5.99% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$2.942 billion (31 December 2012 est.)
country comparison to the world: 117
$2.561 billion (31 December 2011 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$9.527 billion (31 December 2012 est.)
country comparison to the world: 110
$9.213 billion (31 December 2011 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$11.11 billion (31 December 2012 est.)
country comparison to the world: 94
$10.69 billion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$5.474 billion (31 December 2011)
country comparison to the world: 84
$4.227 billion (31 December 2010)
$4.432 billion (31 December 2009)
[see also:
Market value of publicly traded shares country ranks ]
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:
1.8% (2011 est.)
country comparison to the world: 128
[see also: Industrial production growth rate country ranks ]
Current account balance:
-$1.035 billion (2012 est.)
country comparison to the world: 112
-$1.223 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$5.804 billion (2012 est.)
country comparison to the world: 109
$5.402 billion (2011 est.)
[see also:
Exports country ranks ]
Exports - commodities:
offshore assembly exports, coffee, sugar, textiles and apparel, gold, ethanol, chemicals, electricity, iron and steel manufactures
Exports - partners:
US 45.1%, Guatemala 13.3%, Honduras 8.6%, Nicaragua 5.2%, Germany 4.1% (2011)
Imports:
$10.44 billion (2012 est.)
country comparison to the world: 94
