El Salvador’s major industrial crops are coffee, cotton and sugar cane. Coffee is grown in volcanic hillsides halfway between the base and the crater, while sugar cane and cotton are harvested in the lowlands.When it comes to exports, coffee furnishes a considerably high percentage of the country’s income revenues. On the other hand, cotton –either in stalks or in fabrics and garments- is another element with a huge role to play in the nation’s trade balance. Besides the aforesaid items, El Salvador produces good quantities of corn, rice, peas, tropical fruits and other foodstuffs, especially for its self-sufficiency.67% of the country’s lands is used in agriculture and stock breeding. Huge extensions owned by landlords where most of export crops are sowed paint a contrasting picture compared to small-size properties, often tapped into with primitive procedures and scarce economic means.At the same time, El Salvador counts on an ample stock breeding development, especially cows and bulls (1.2 million cattle heads) thanks in part to the nation’s good-quality grazing grounds. Swine and pigs consist of 400,000 animals.
Over $1.9 billion worth of such items as coffee, sugar, shrimps and fabrics are exported every year. Other export items include home appliances, bathroom accessories, fabrics, clothing, footwear, medications, leatherworks, computer chips, TV sets, metal furniture and other items.
Imports coming into the country stem from capital assets, crude oil, foodstuffs, machinery, ironworks and steel.
There are major industries in the country that produce fabrics and textiles, leatherworks, pharmaceuticals and machinery. The development of the agricultural industry conducted in scientific ways has made the food-processing industry a much bigger player. Giant shrimps has become one of the country’s chief exports. Los productos de exportación no tradicionales, incluyen electrodomésticos, accesorios para baño, textiles y ropa, calzado, medicamentos, cueros, circuitos integrados, componentes para computadoras, televisores, muebles metálicos y mucho más. Todos son elaborados por obreros salvadoreños, bajo supervisión de técnicos y gerentes salvadoreños. La mayor parte de la energía eléctrica que se consume en el país proviene del aprovechamiento hidroeléctrico del río Lempa. En la década de 1970 comenzó el aprovechamiento de la energía geotérmica de Ahuachapán.
The GNP, according to estimates published in 1998, peaked $17.5 billion, with a 3.7% annual growth and $3,000 per capita.
Fishing nets trawling in the Pacific Ocean catch blue fish for self-sufficiency, as well as crustaceans (shrimps and lobsters) with a high export demand.Forest items usually supply both construction and furniture-making industries. The most valuable types of wood for these purposes are mahogany, cedar, oak, medlar tree and raft wood. Balm rubber, collected in the coastal plains, is another forest product of major importance for the country’s economy.
El Salvador’s economic development picked up steam in the second half of the 20th century, when the gross national product grew faster than the number of inhabitants in the country. However, the civil war that swept the nation between 1979 and 1990 wreaked havoc with a considerable part of the country’s fundamental infrastructure, as it also snagged the country’s export abilities. The peace treaty signed in 1992 has fostered the implementation of national restoration projects through foreign investment hailing from the U.S., Germany, Spain and Japan, as well as with funds provided by international institutions.El Salvador is a developing country with an economic system in place based on the initiatives of private enterprise. The State is committed with political and economic reforms aimed at privatizing such enterprises and sectors as banking, energy and communications, where its participation had formerly been very active. El Salvador’s GNP reached $17,800 in 1997 and it’s said to keep a 4% growth every year.As to economic sectors, agriculture provides the underpinnings of the nation’s economy for it embraces nearly 27% of the country’s workforce. Sugar cane and coffee are the two main crops and make up the biggest chunk of its exports. Agriculture stands for 15% of the nation’s GNP. The development of certain export-oriented industries is sucking in an ever-growing number of agricultural workers and farmers.As a result of this trend, manufacturing industries are responsible for 22% of the nation’s GNP. As far as services are concerned, its share of the national GNP is 51.3% and the number of employees goes beyond 21% of the total workforce. Trade activities employ 20% of the workforce. Transportation and communications use 4% of the workforce, while construction and other sectors comprise the remaining 9%.By and large, El Salvador’s workforce is made up of 21 million workers (1997) and the unemployment rate rose to 7.7%.Income revenues is estimated in $3,000, while the annual inflation rate has plunged from 11.4% in 1995 to just 2% in 1997.Spring-like weather is one of the country’s main attractions that helps foster the development of tourism as another key element of its economy.For the promotion of tourism, El Salvador’s Tourism Institute has built and put together 14 tour centers –leisure and relaxation areas all along the Pacific coast- with an appropriate infrastructure and top-rated services.
There are over 12,000 kilometers of roads –one third of them completely paved and can be used all year round. There’s a good service of urban buses, yet these vehicles are jam-packed most of the time. Buses link major cities in the rural areas. Taxis with negotiable cab fares –they are nor rigged with taximeters- are also available. Hotels have cab services of their own.
El Salvador - Colombia: Agreement of Partial Scope Salvador – Panama: Free Trade Agreement and Preferential Exchange.Association of Caribbean States, Free Trade Agreement with the Dominican Republic, Central American Common Market, bilateral investment treaties with Argentina, Chile, Ecuador and Peru
