El Salvador Economy Profile 2002

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)

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

GDP - real growth rate

1.4% (2001 est.)

GDP - per capita (PPP)

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

GDP - composition by sector

agriculture: 10%
industry: 30%
services: 60% (2000) (2000)

Population below poverty line

48% (1999 est.)

Household income or consumption by percentage share

lowest 10%: 1%
highest 10%: 39% (2001) (2001)

Inflation rate (consumer prices)

3.8% (2001 est.)

Labor force

2.35 million (1999) (1999)

Labor force - by occupation

agriculture 30%, industry 15%, services 55% (1999 est.)

Unemployment rate

10% (2001 est.)

Distribution of family income - Gini index

51 (1997)

Budget

revenues: $2.1 billion
expenditures: $2.5 billion, including capital expenditures of $NA (2001 est.) (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%
hydro: 36%
nuclear: 0%
other: 22% (2000)

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