Economy El Salvador
Economy - overview:
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 legal tender. Because
competitor countries have fluctuating exchange rates, El Salvador
must face the challenge of raising productivity and lowering costs.
GDP:
purchasing power parity - $29.41 billion (2002 est.)
GDP - real growth rate:
2.1% (2002 est.)
GDP - per capita:
purchasing power parity - $4,600 (2002 est.)
GDP - composition by sector: agriculture: 10% industry: 30% services: 60% (2001)
Population below poverty line: 48% (1999 est.)
Household income or consumption by percentage share: lowest 10%: 1.4% highest 10%: 39.3% (2001)
Distribution of family income - Gini index:
52.2 (1998)
Inflation rate (consumer prices):
3.8% (2001 est.)