About El Salvador and Key Financial Statistics









About El Salvador and Key Financial Statistics



Overview of Economy:

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 the export of processed foods, sugar, and ethanol, and supported investment in the apparel sector amid increased Asian competition. The Salvadoran Government maintained fiscal discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005, but El Salvador's public debt has been growing over the last several years, amounting to some 59% of GDP in 2014. External debt was below 30% of GDP in 2014. In September 2014, El Salvador signed a five-year $277 million second compact with the Millennium Challenge Corporation (MCC) - a United States Government agency aimed at stimulating economic growth and reducing poverty - to improve El Salvador's competitiveness and productivity in international markets. In November 2014 along with his counterparts from Guatemala and Honduras, President SANCHEZ CEREN announced the “Plan of the Alliance for Prosperity in the Northern Triangle.” This plan seeks to address the challenges facing the three Northern Triangle countries, including steps the governments will take to stimulate economic growth, increase transparency and fiscal responsibility, reduce violence, modernize the justice system, improve infrastructure, and promote educational opportunities over the next several years.




Gross Domestic Product (In USD):

$51.19 billion (2014 est.)
$50.21 billion (2013 est.)
$49.3 billion (2012 est.)



Composition of Gross Domestic Product:


% Agricuture: 10.5

% Industry: 24.7

% Services: 64.8


Composition of Labor Force by Occupation:

% Agriculture: 21

% Industry: 20

% Services: 58


Per Capita Income:

$8,100 (2014 est.)
$7,900 (2013 est.)
$7,800 (2012 est.)



Exports:

$4.256 billion (2014 est.)
$4.334 billion (2013 est.)



Key Export Commodities:

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



Export Partners:

US 46.5%, Honduras 14.2%, Guatemala 13.4%, Nicaragua 6.4%, Costa Rica 4.6% (2014)



Imports:

$9.463 billion (2014 est.)
$9.629 billion (2013 est.)



Key Import Commodities:

raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, electricity



Import Partners:


US 41%, Guatemala 9.5%, China 7.3%, Mexico 7%, Honduras 5.3% (2014)


Inflation Rate (Consumer Price Index):

1.1% (2014 est.)
0.8% (2013 est.)




Exchange Rate to USD:

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




Unemployment Rate:

6.2% (2014 est.)
6.3% (2013 est.)


S&P Rating:



Standard & Poor's Ratings:

  • AAA: The best quality borrowers, reliable and stable
  • AA: Quality borrowers, a bit higher risk than AAA
  • A: Economic situation can affect finance
  • BBB: Medium class borrowers, which are satisfactory at the moment
  • BB: More prone to changes in the economy
  • B: Financial situation varies noticeably
  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.






Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings