Monetary & Banking 

Country name:

conventional long form: Republic of El Salvador
conventional short form: El Salvador
local long form: Republica de El Salvador
local short form: El Salvador

 

Description:

El Salvador is situated in Central America and is bordered north and west by Guatemala, north and east by Honduras, and south and west by the Pacific Ocean. Most of the country is volcanic uplands, along which run two almost parallel rows of volcanos; the highest are Santa Ana at 2,365m (7,759ft), San Vicente at 2,182m (7,159ft) and San Salvador at 1,943m (6,375ft). Volcanic activity has resulted in a thick layer of ash and lava on the highlands, creating a richly mineralised soil, ideal for coffee planting. Lowlands lie to the north and south of the high backbone.

 

Capital:

San Salvador. Population: 2.2 million.
 

 

Location:

Central America, bordering the North Pacific Ocean, between Guatemala and Honduras

 

Area:

21,040 sq km (8,124 sq miles).
 

 

Population:

7 million (2005).

 

Languages:

The official language is Spanish. English is widely spoken.

 

Economy - overview:

A long-running civil war (1980-1992) caused a significant decline in El Salvador's agriculture-dependent economy. A fall in world coffee prices over the last decade has also hit rural communities. The strengths of today's economy lie in a successful textiles and clothes manufacturing industry, as well as growing service industries, in particular call centres in the financial sector.
Underemployment remains a serious problem, and remittances from Salvadorans working abroad are a vital source of income for many families. These have fallen substantially as a result of the global financial recession. The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) provides El Salvador preferential access to American markets, benefitting the textiles and clothing, and processed food sectors.
In 2008, annual growth was 3.2% while inflation was 4.7%. El Salvador is a member of the Central American Common Market.

Economy:

A long-running civil war (1980-1992) caused a significant decline in El Salvador's agriculture-dependent economy. A fall in world coffee prices over the last decade has also hit rural communities. The strengths of today's economy lie in a successful textiles and clothes manufacturing industry, as well as growing service industries, in particular call centres in the financial sector.
Underemployment remains a serious problem, and remittances from Salvadorans working abroad are a vital source of income for many families. These have fallen substantially as a result of the global financial recession. The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) provides El Salvador preferential access to American markets, benefitting the textiles and clothing, and processed food sectors.
In 2008, annual growth was 3.2% while inflation was 4.7%. El Salvador is a member of the Central American Common Market.
 

 

Industries:

food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals