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El Salvador Economy 2010
http://www.workmall.com/wfb2010/el_salvador/el_salvador_economy.html
SOURCE: 2010 CIA WORLD FACTBOOK AND OTHER SOURCES

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Page last updated on January 15, 2010

Economy - overview:
Despite being the smallest country geographically in Central America, El Salvador has the third largest economy with a per capita income that is roughly half that of Costa Rica and Panama, but double that of Nicaragua. Economic growth has been modest in recent years and contracted by 2.6% in 2009. El Salvador leads the region in remittances per capita with inflows equivalent to nearly all export income and about a third of all households receive these financial inflows. In 2006 El Salvador was the first country to ratify the Central America-Dominican Republic Free Trade Agreement. CAFTA has bolstered exports of processed foods, sugar, and ethanol, and supported investment in the apparel sector, which faced Asian competition with the expiration of the Multi-Fiber Agreement in 2005. In anticipation of the declines in the apparel sector's competitiveness, the previous administration sought to diversify the economy by promoting the country as a regional distribution and logistics hub, and by promoting tourism investment through tax incentives. 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. In late 2006, the government and the Millennium Challenge Corporation 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. With the adoption of the US dollar as its currency in 2001, El Salvador lost control over monetary policy. Any counter-cyclical policy response to the downturn must be through fiscal policy, which is constrained by legislative requirements for a two-thirds majority to approve any international financing.

GDP (purchasing power parity):
$43.23 billion (2009 est.)

$44.25 billion (2008 est.)
$43.17 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):
$22.17 billion (2009 est.)

GDP - real growth rate:
-2.3% (2009 est.)

2.5% (2008 est.)
4.7% (2007 est.)

GDP - per capita (PPP):
$6,000 (2009 est.)

$6,300 (2008 est.)
$6,200 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:
agriculture: 11.1%
industry: 28.2%
services: 60.7% (2009 est.)

Labor force:
2.917 million (2009 est.)

Labor force - by occupation:
agriculture: 19%
industry: 23%
services: 58% (2006 est.)

Unemployment rate:
7.2% (2009 est.)

6.9% (2008 est.)
note: data are official rates; but the economy has much underemployment

Population below poverty line:
30.7% (2006 est.)

Household income or consumption by percentage share:
lowest 10%: 1%
highest 10%: 37% (2005)

Distribution of family income - Gini index:
52.4 (2002)

52.5 (2001)

Investment (gross fixed):
13.4% of GDP (2009 est.)

Budget:
revenues: $3.798 billion
expenditures: $4.803 billion (2009 est.)

Public debt:
55.4% of GDP (2009 est.)

44.7% of GDP (2008 est.)

Inflation rate (consumer prices):
1% (2009 est.)

7.3% (2008 est.)

Commercial bank prime lending rate:
12.33% (31 December 2008)

7.81% (31 December 2007)

Stock of money:
$213.7 million (31 December 2008)

$209.7 million (31 December 2007)

Stock of quasi money:
$788.7 million (31 December 2008)

$797.1 million (31 December 2007)

Stock of domestic credit:
$1.19 billion (31 December 2008)

$1.15 billion (31 December 2007)

Market value of publicly traded shares:
$NA (31 December 2008)

$6.743 billion (31 December 2007)
$5.465 billion (31 December 2006)

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:
-3.3% (2009 est.)

Electricity - production:
5.559 billion kWh (2007 est.)

Electricity - consumption:
4.676 billion kWh (2007 est.)

Electricity - exports:
7 million kWh (2007 est.)

Electricity - imports:
38 million kWh (2007 est.)

Oil - production:
0 bbl/day (2008 est.)

Oil - consumption:
45,000 bbl/day (2008 est.)

Oil - exports:
1,927 bbl/day (2007 est.)

Oil - imports:
46,310 bbl/day (2007 est.)

Oil - proved reserves:
0 bbl (1 January 2009 est.)

Natural gas - production:
0 cu m (2008 est.)

Natural gas - consumption:
0 cu m (2008 est.)

Natural gas - exports:
0 cu m (2008 est.)

Natural gas - imports:
0 cu m (2008 est.)

Natural gas - proved reserves:
0 cu m (1 January 2009 est.)

Current account balance:
$-621 million (2009 est.)

$-1.595 billion (2008 est.)

Exports:
$4.086 billion (2009 est.)

$4.611 billion (2008 est.)

Exports - commodities:
offshore assembly exports, coffee, sugar, textiles and apparel, gold, ethanol, chemicals, electricity, iron and steel manufactures

Exports - partners:
US 47.5%, Guatemala 14.2%, Honduras 11.5%, Nicaragua 4.6% (2008)

Imports:
$7.215 billion (2009 est.)

$9.003 billion (2008 est.)

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

Imports - partners:
US 29.9%, Guatemala 11.8%, Mexico 9.7%, China 4.5%, France 4.4% (2008)

Reserves of foreign exchange and gold:
$3.391 billion (31 December 2009 est.)

$2.545 billion (31 December 2008 est.)

Debt - external:
$11.51 billion (31 December 2009 est.)

$10.69 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:
$6.987 billion (31 December 2009 est.)

$6.702 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:
$565 million (31 December 2009 est.)

$440 million (31 December 2008 est.)

Exchange rates:
the US dollar became El Salvador's currency in 2001


NOTE: The information regarding El Salvador on this page is re-published from the 2010 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of El Salvador Economy 2010 information contained here. All suggestions for corrections of any errors about El Salvador Economy 2010 should be addressed to the CIA.



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