Economic overview: The Salvadoran economy is suffering from a weak tax system, plant closures, the effects of Hurricane Mitch and the devastating 2001 earthquake, and low global coffee prices. On the positive side, inflation has fallen below 10% in recent years, as well as a significant overall increase in exports. The significant deficit in the balance of payments was offset by remittances from Salvadorans living abroad (about $1.6 billion in 2001) and external assistance. Since January 1, 2001, the US dollar has become legal tender on a par with the colón. See cheeroutdoor.com to know more about El Salvador Business. GDP: at purchasing power parity – $24 billion (2000 est.). Real GDP growth rate: 2.5% (2000 est.). GDP per capita: at purchasing power parity – $4,000 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 12%; industry: 28%; services: 60% (1999 est.). Proportion of population below the poverty line: 48% (1999 est.). Percentage distribution of family income or consumption: 10% of the poorest families account for: 1.2%; 10% of the wealthiest families account for: 38.3% (1995). Inflation rate at consumer prices: 2.5% (2000 est.). Labor force: 2.35 million people (1999). Employment structure: agriculture 30%, industry 15%, services 55% (1999 est.). Unemployment rate: 10% Budget: revenues: $1.8 billion; expenditures: $2.2 billion, including capital expenditures – NA (1999 est.). Spheres of economy: production of food and beverages, oil industry, chemical industry, production of fertilizers, textiles, furniture, light metals. Growth in industrial production: 5% (2000 est.). Electricity generation: 3.641 billion kWh (1999 est.) Sources of electricity generation: fossil fuels: 45.65%; hydropower: 41.01%; nuclear fuel: 0%; others: 13.34% (1999). Electricity consumption: 3.638 billion kWh (1999) Electricity export: 208 million kWh (1999). Electricity import: 460 million kWh (1999). Agricultural products: coffee, sugarcane, corn, rice, legumes, oilseeds, cotton, sorghum; beef, dairy products; shrimps. Export: $2.8 billion (free on board, 2000) Exports: products from offshore assembly plants, coffee, sugar, shrimp, textiles, chemicals, electricity. Export partners: USA 63%, Guatemala 12%, Honduras 7%, Costa Rica 4% (1996). Imports: $4.6 billion (free on board, 2000) Imports: raw materials, consumer goods, capital goods, fuels, foodstuffs, oil, electricity. Import partners: USA 52%, Guatemala 9%, Mexico 6%, Costa Rica 3% (1999). External debt: $4.1 billion (2000 est.). Economic aid recipient: $252 million total; US$57 million (1999 est.). Economic aid donor: Currency: Salvadoran colón, US dollar. Currency code: SVC; USD. Exchange rate: SVC/USD -8.755 (fixed exchange rate since 1993). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 380,000 (1998). Mobile cellular telephones: 40 163 (1997). Telephone system: domestic: nationwide microwave radio relay system; international: satellite earth station – 1 Intelsat (Atlantic Ocean); connected to the Central American Microwave Communication System. Broadcast stations: AM -61 (and 24 repeaters), FM – 30, shortwave – 0 (1998). Radio receivers: 2.75 million (1997) Television broadcast stations: 5 (1997). Televisions: 600,000 (1990). Internet country code: sv Internet service providers: 4 (2000). Number of users: 40,000 (2000).
Transport
Transport Railways: total: 562 km; narrow gauge: 602 km (0.914 m gauge); note: the length of tracks that can be used has been reduced to 283 km due to uselessness and insufficient maintenance (2001). Roads: total: 10,029 km; paved: 1,986 km (including 327 km of expressways); unpaved: 8,043 km (1997 est.). Waterways: The Lempa River is partly navigable. Ports and harbours: Acahutla, La Libertad, La Union, Puerto Cutuco, Puerto el Triunfo. Merchant fleet: none (2000 est.). Airports: 83 (2000 est.). Airports with paved runways: total: 4; over 3,047 m: 1; from 1,524 to 2,437 m: 1; from 914 to 1523 m: 2 (2000 est.). Airports with unpaved runways: total: 79; from 914 to 1523 m:17; less than 914 m: 62 (2000 est.). Helipads: 1 (2000 est.).
Armed forces
Branches of the Armed Forces: Army, Air Force, Navy Conscription age: 18 years. Total Military Manpower: Male 15 to 49: 1,464,898 (2001 est.). Eligible for military service: males aged 15 to 49: 929,263 (2001 est.). Number of persons reaching military age each year: men: 68,103 (2001 est.). Military spending in dollar terms: $112 million (1999) Military spending as part of GDP: 0.7% (1999)
International Issues
International issues International disputes: regarding the maritime boundary in the Gulf of Fonseca, the International Court of Justice, having considered the issue of the boundary line established in 1900 by the mixed Honduran-Nicaraguan boundary commission, recognized the need for a tripartite decision by El Salvador, Honduras and Nicaragua. Illicit drugs: cocaine transit point; production of marijuana for local consumption; an increase in domestic drug use.
