Economy El Salvador
Economy - overview:
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 remittances
from Salvadorans living abroad - 16% of GDP in 2004 - and external
aid. 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 (purchasing power parity):
$32.35 billion (2004 est.)
GDP - real growth rate:
1.8% (2004 est.)
GDP - per capita:
purchasing power parity - $4,900 (2004 est.)
GDP - composition by sector: agriculture: 9.2% industry: 31.1% services: 59.7% (2004 est.)
Labor force:
2.75 million (2004 est.)
Labor force - by occupation:
agriculture 17.1%, industry 17.1%, services 65.8% (2003 est.)
Unemployment rate:
6.3% - but the economy has much underemployment (2004 est.)
Population below poverty line:
36.1% (2003 est.)