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Economic overview
El Salvador — 36 years of data
Historical Values
| Year | Value |
|---|---|
| 1990 | The economy experienced a modest recovery during the period 1983-86, after a sharp decline in the early 1980s. Real GDP grew by 1.5% a year on the strength of value added by the manufacturing and service sectors. In 1987 the economy expanded by 2.5% as agricultural output recovered from the 1986 drought. The agricultural sector accounts for 25% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, contributing 60% to export |
| 1991 | The agricultural sector accounts for 25% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, accounting for 45% of export earnings. The manufacturing sector, based largely on food and beverage processing, accounts for 18% of GDP and 15% of employment. Economic losses because of guerrilla sabotage total more than $2.0 billion since 1979. The costs of maintaining a large military seriously constrain the government's efforts |
| 1992 | The agricultural sector accounts for 25% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, accounting for 45% of export earnings. The manufacturing sector, based largely on food and beverage processing, accounts for 18% of GDP and 15% of employment. Economic losses because of guerrilla sabotage total more than $2 billion since 1979. The costs of maintaining a large military seriously constrain the government's efforts t |
| 1993 | The agricultural sector accounts for 24% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, accounting for 45% of export earnings. The manufacturing sector, based largely on food and beverage processing, accounts for 18% of GDP and 15% of employment. Economic losses because of guerrilla sabotage total more than $2 billion since 1979. The costs of maintaining a large military seriously constrain the government's efforts t |
| 1994 | The agricultural sector accounts for 24% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, accounting for 45% of export earnings. The manufacturing sector, based largely on food and beverage processing, accounts for 19% of GDP and 15% of employment. In 1992-93 the government made substantial progress toward privatization and deregulation of the economy. Growth in national output in 1990-93 exceeded growth in population |
| 1995 | The agricultural sector accounts for 24% of GDP, employs about 40% of the labor force, and contributes about 66% to total exports. Coffee is the major commercial crop, accounting for 45% of export earnings. The manufacturing sector, based largely on food and beverage processing, accounts for 19% of GDP and 15% of employment. In 1992-94 the government made substantial progress toward privatization and deregulation of the economy. Growth in national output in 1991-94 nearly averaged 5%, exceeding |
| 1996 | El Salvador possesses a fast-growing entrepreneurial economy in which 90% of economic activity is in private hands, with growth averaging 5% since 1990. Yet, because the 1980s were a decade of civil war and stagnation, per capita GDP has not regained the level of the late 1970s. The rebound in the 1990s stems from the government program, in conjunction with the IMF, of privatization, deregulation, and fiscal stabilization. The economy now is oriented more toward manufacturing and services compar |
| 1997 | El Salvador possesses a fast-growing entrepreneurial economy in which 90% of economic activity is in private hands, with growth averaging 5% since 1990. Yet, because the 1980s were a decade of civil war and stagnation, per capita GDP has not regained the level of the late 1970s. The rebound in the 1990s stems from the government program, in conjunction with the IMF, of privatization, deregulation, and fiscal stabilization. The economy now is oriented more toward manufacturing and services compar |
| 1998 | 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 Salv |
| 1999 | In recent years inflation has fallen to unprecedented levels, and exports have grown substantially. Even so, 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. El Salvador sustained damage from Hurricane Mitch, but not as much as other Central American countries. Inflation and the trade deficit are expected to rise somewhat as a result. |
| 2000 | El Salvador is a poor Central American economy which has been suffering from a weak tax collection system, factory closings, the aftermath of Hurricane Mitch, 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 substantial trade deficit has been offset by remittances from the large number of Salvadorans living abroad and from external aid. |
| 2001 | 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 ex |
| 2002 | 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 ex |
| 2003 | In recent years, this Central American economy 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, inflation has fallen to single digit levels, and total exports have grown substantially. The trade deficit has been offset by annual remittances of almost $2 billion from Salvadorans living abroad and by external aid. The US dollar is now the |
| 2004 | With the adoption of the US dollar as its currency, El Salvador has lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy. GDP per capita is roughly only half that of Brazil, Argentina, and Chile, and the distribution of income is highly unequal. The trade deficit has been offset by annual remittances of almost $2 billion from Salvadorans living abroad and external aid. The government is striving to open new export markets, encourage foreign investment |
| 2005 | GDP per capita is roughly half that of Brazil, Argentina, and Chile, and the distribution of income is highly unequal. The government is striving to open new export markets, encourage foreign investment, modernize the tax and healthcare systems, and stimulate the sluggish economy. Implementation of the Central America-Dominican Republic Free Trade Agreement, ratified by El Salvador in 2004, is viewed as a key policy to help achieve these objectives. The trade deficit has been offset by annual re |
| 2006 | The smallest country in Central America, El Salvador has the third largest economy, but growth has been minimal in recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement, which El Salvador was the first to ratify, is viewed as a key policy to help achieve these objectives. The trad |
| 2007 | The smallest country in Central America, El Salvador has the third largest economy, but growth has been minimal in recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement, which El Salvador was the first to ratify, has strengthened an already positive export trend. The trade deficit |
| 2008 | The smallest country in Central America, El Salvador has the third largest economy, but growth has been modest in recent years. Robust growth in non-traditional exports have offset declines in the maquila exports, while remittances and external aid offset the trade deficit from high oil prices and strong import demand for consumer and intermediate goods. El Salvador leads the region in remittances per capita with inflows equivalent to nearly all export income. Implementation in 2006 of the Centr |
| 2009 | The smallest country in Central America, El Salvador has the third largest economy, but growth has been modest in recent years. Economic growth will decelerate in 2009 due to the global slowdown and to El Salvador's dependence on exports to the US and remittances from the US. El Salvador leads the region in remittances per capita with inflows equivalent to nearly all export income. In 2006 El Salvador was the first country to ratify the Central America-Dominican Republic Free Trade Agreement (CA |
| 2010 | Despite being the smallest country geographically in Central America, El Salvador has the third largest economy in the region. The economy took a hit from the global recession and real GDP contracted by 3.5% in 2009. The economy began a slow recovery in 2010 on the back of improved export and remittances figures. Remittances accounted for 16% of GDP in 2009, and about a third of all households receive these transfers. In 2006 El Salvador was the first country to ratify the Dominican Republic-Cen |
| 2011 | Despite being the smallest country geographically in Central America, El Salvador has the third largest economy in the region. The economy took a hit from the global recession and real GDP contracted by 3.5% in 2009. The economy began a slow recovery in 2010 on the back of improved export and remittances figures. Remittances accounted for 16% of GDP in 2009, and about a third of all households receive these transfers. In 2006 El Salvador was the first country to ratify the Dominican Republic-Cen |
| 2012 | 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, |
| 2013 | 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, |
| 2014 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2013. Remittances accounted for 16% of GDP in 2013 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 |
| 2015 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014. Remittances accounted for 17% of GDP in 2014 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 |
| 2016 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015. Remittances accounted for 17% of GDP in 2014 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 Agreemen |
| 2017 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-16 with an average annual growth rate of 2.4%. Remittances accounted for approximately 17.1% of GDP in 2016 and were received by about a third of all households. | In 2006, El Salvador was the first country to rati |
| 2018 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-17 with an average annual growth rate of 2.4%. Remittances accounted for approximately 18% of GDP in 2017 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify t |
| 2019 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-17 with an average annual growth rate of 2.4%. Remittances accounted for approximately 18% of GDP in 2017 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify t |
| 2020 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-17 with an average annual growth rate of 2.4%. Remittances accounted for approximately 18% of GDP in 2017 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify t |
| 2021 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-17 with an average annual growth rate of 2.4%. Remittances accounted for approximately 18% of GDP in 2017 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify t |
| 2022 | The smallest country in Central America geographically, El Salvador has the fourth largest economy in the region. With the global recession, real GDP contracted in 2009 and economic growth has since remained low, averaging less than 2% from 2010 to 2014, but recovered somewhat in 2015-17 with an average annual growth rate of 2.4%. Remittances accounted for approximately 18% of GDP in 2017 and were received by about a third of all households. In 2006, El Salvador was the first country to ratify t |
| 2023 | growth-challenged Central American economy buttressed via remittances; dense labor force; fairly aggressive COVID-19 stimulus plan; new and lower banking reserve requirements; earthquake, tropical storm, and crime disruptions; widespread corruption |
| 2024 | growth-challenged Central American economy buttressed via remittances; dense labor force; fairly aggressive COVID-19 stimulus plan; new and lower banking reserve requirements; earthquake, tropical storm, and crime disruptions; widespread corruption |
| 2025 | upper-middle-income, dollarized Central American economy; reliant on remittances from US; recent growth linked to infrastructure investment, consumption, and crime reduction; $1.3 billion IMF loan to address fiscal imbalances; Bitcoin adopted as legal tender; persistent poverty and large informal sector |