Economic Achievements
The economy of El Salvador is the 3rd largest in the Latin American region based
on GDP and purchasing power GDP, next to Costa Rica and Panama. The country’s
GDP in PPP (purchasing power parity) as of 2007 is approximately US $41.65 billion. The service has the biggest contribution to the economy at 60.7% of GDP in 2006, followed by the industry at 29.6%, and agriculture at 7.6% Its GDP per capita is about US$5800
but still experiences numerous social challenges and remains as one of the
poorest countries in the region. Antiguo Cuscatlán has the highest per capita
income of all the cities in the country, and is a center of international
investment.
<El Salvador's World Trade Center San Salvador>
on GDP and purchasing power GDP, next to Costa Rica and Panama. The country’s
GDP in PPP (purchasing power parity) as of 2007 is approximately US $41.65 billion. The service has the biggest contribution to the economy at 60.7% of GDP in 2006, followed by the industry at 29.6%, and agriculture at 7.6% Its GDP per capita is about US$5800
but still experiences numerous social challenges and remains as one of the
poorest countries in the region. Antiguo Cuscatlán has the highest per capita
income of all the cities in the country, and is a center of international
investment.
<El Salvador's World Trade Center San Salvador>
Trade & Agriculture
In 2006, El Salvador was the first country to establish the Central
America-Dominican Republic Free Trade Agreement. CAFTA has strengthened exports of processed foods, sugar, and ethanol, and supported investment in the apparel sector, which faced Asian competition with the expiration of the Multi-Fiber Agreement in 2005. In preparations for a downfall in the apparel sector's competitiveness, the previous administration sought to expand the economy by promoting the country as a regional distribution and logistics hub, and by tourism investment through tax incentives.
There are a total of 15 free trade zones in El Salvador. El Salvador
signed the Central American Free Trade Agreement (CAFTA) —
negotiated by the five countries of Central America and the Dominican Republic — with the United States in 2004. El Salvador has signed free trade agreements with Mexico, Chile, the Dominican Republic, and Panama and increased its trade with those countries. Negotiations started in 2006 for a free trade agreement with Colombia.
America-Dominican Republic Free Trade Agreement. CAFTA has strengthened exports of processed foods, sugar, and ethanol, and supported investment in the apparel sector, which faced Asian competition with the expiration of the Multi-Fiber Agreement in 2005. In preparations for a downfall in the apparel sector's competitiveness, the previous administration sought to expand the economy by promoting the country as a regional distribution and logistics hub, and by tourism investment through tax incentives.
There are a total of 15 free trade zones in El Salvador. El Salvador
signed the Central American Free Trade Agreement (CAFTA) —
negotiated by the five countries of Central America and the Dominican Republic — with the United States in 2004. El Salvador has signed free trade agreements with Mexico, Chile, the Dominican Republic, and Panama and increased its trade with those countries. Negotiations started in 2006 for a free trade agreement with Colombia.
El Salvador has the third largest economy in the region. With the global recession in 2009. The economy slowed even further during 2010-12. El Salvador has promoted an open trade and investment environment and has embarked on a wave of privatizations extending to telecom, electricity distribution, banking, and pension funds. The Salvadorian Government maintained economic discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005. El Salvador's external debt amounts to about one-fourth of GDP. In 2012, El Salvador successfully completed a $461 million compact with the Millennium Challenge Corporation (MCC) - a United States Government agency who's goal is to stimulate economic growth and reducing poverty in the country's northern region, the primary conflict zone during the civil war, through investments in education, public services, enterprise development, and transportation infrastructure. In December 2011, the MCC approved El Salvador's eligibility to develop a proposal for a program for consideration.