El Salvador Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

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 the Dominican Republic-Central American Free Trade Agreement, which has bolstered the export of processed foods, sugar, and ethanol, and supported investment in the apparel sector amid increased Asian competition. In September 2015, El Salvador kicked off a five-year $277 million second compact with the Millennium Challenge Corporation - a US Government agency aimed at stimulating economic growth and reducing poverty - to improve El Salvador's competitiveness and productivity in international markets.

 

The Salvadoran Government maintained fiscal discipline during reconstruction and rebuilding following earthquakes in 2001 and hurricanes in 1998 and 2005, but El Salvador's public debt, estimated at 59.3% of GDP in 2017, has been growing over the last several years.

Real GDP (purchasing power parity)

$52.26 billion (2020 est.)

$56.77 billion (2019 est.)

$55.31 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.3% (2017 est.)

2.6% (2016 est.)

2.4% (2015 est.)

Real GDP per capita

$8,100 (2020 est.)

$8,800 (2019 est.)

$8,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$27.023 billion (2019 est.)

Inflation rate (consumer prices)

0% (2019 est.)

1% (2018 est.)

1% (2017 est.)

Credit ratings

Fitch rating: B- (2017)

Moody's rating: B3 (2018)

Standard & Poors rating: B- (2018)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 12% (2017 est.)

industry: 27.7% (2017 est.)

services: 60.3% (2017 est.)

GDP - composition, by end use

household consumption: 84.5% (2017 est.)

government consumption: 15.8% (2017 est.)

investment in fixed capital: 16.9% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 27.6% (2017 est.)

imports of goods and services: -44.9% (2017 est.)

Agricultural products

sugar cane, maize, milk, poultry, sorghum, beans, coconuts, eggs, apples, oranges

Industries

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

Industrial production growth rate

3.6% (2017 est.)

Labor force

2.908 million (2019 est.)

Labor force - by occupation

agriculture: 21%

industry: 20%

services: 58% (2011 est.)

Unemployment rate

7% (2017 est.)

6.9% (2016 est.)

note: data are official rates; but underemployment is high

Youth unemployment rate (ages 15-24)

total: 11.6%

male: 9.6%

female: 15.1% (2020)

Population below poverty line

22.8% (2019 est.)

Gini Index coefficient - distribution of family income

38.6 (2018 est.)

38 (2014)

Household income or consumption by percentage share

lowest 10%: 2.2%

highest 10%: 32.3% (2014 est.)

Budget

revenues: 5.886 billion (2017 est.)

expenditures: 6.517 billion (2017 est.)

Budget surplus (+) or deficit (-)

-2.5% (of GDP) (2017 est.)

Public debt

67.9% of GDP (2017 est.)

66.4% of GDP (2016 est.)

note: El Salvador's total public debt includes non-financial public sector debt, financial public sector debt, and central bank debt

Taxes and other revenues

23.7% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$501 million (2017 est.)

-$500 million (2016 est.)

Exports

$6.29 billion (2020 est.) note: data are in current year dollars

$7.98 billion (2019 est.) note: data are in current year dollars

$7.56 billion (2018 est.) note: data are in current year dollars

Exports - partners

United States 40%, Guatemala 15%, Honduras 15%, Nicaragua 6% (2019)

Exports - commodities

textiles and apparel, electrical capacitors, plastic lids, raw sugar, toilet paper (2019)

Imports

$10.82 billion (2020 est.) note: data are in current year dollars

$12.45 billion (2019 est.) note: data are in current year dollars

$12.32 billion (2018 est.) note: data are in current year dollars

Imports - partners

United States 30%, China 14%, Guatemala 13%, Mexico 8%, Honduras 6% (2019)

Imports - commodities

refined petroleum, packaged medicines, clothing, broadcasting equipment, natural gas (2019)

Reserves of foreign exchange and gold

$3.567 billion (31 December 2017 est.)

$3.238 billion (31 December 2016 est.)

Debt - external

$17.24 billion (2019 est.)

$16.712 billion (2018 est.)

Exchange rates

note: the US dollar is used as a medium of exchange and circulates freely in the economy

1 (2017 est.)

NOTE: The information regarding El Salvador on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of El Salvador 2022 information contained here. All suggestions for corrections of any errors about El Salvador 2022 should be addressed to the CIA or the source cited on each page.