A valley in El Salvador

El Salvador Economy

El Salvador's economy in numbers:

Nominal GDP of USD 34.0 billion in 2023.

Nominal GDP of USD 32.5 billion in 2022.

GDP per capita of USD 5,128 compared to the global average of USD 10,589.

GDP per capita of USD 5,349 compared to the global average of USD 10,589.

Average real GDP growth of 2.4% over the last decade.

Average real GDP growth of 2.2% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 71% of overall GDP, manufacturing 15%, other industrial activity 9%, and agriculture 5%. Looking at GDP by expenditure, private consumption accounted for 83% of GDP in 2021, government consumption 20%, fixed investment 22%, and net exports -25%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 75% of total merchandise exports, mineral fuels 4%, food 19%, ores and metals 1% and agricultural raw materials 1%, with other categories accounting for 0% of the total. In the same period, manufactured products made up 66% of total merchandise imports, mineral fuels 13%, food 18%, ores and metals 1% and agricultural raw materials 2%, with other goods accounting for 0% of the total. Total exports were worth USD 6 billion in 2022, while total imports were USD 15 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.2% in the decade to 2022. To read more about GDP growth in El Salvador, go to our dedicated page.

Fiscal policy:

El Salvador's fiscal deficit averaged 4.0% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 6.4% in the decade to 2022. For more information on El Salvador's unemployment click here.

Inflation:

Inflation averaged 1.5% in the decade to 2022. Go to our El Salvador inflation page for extra insight.

Exchange Rate:

From end-2012 to end-2022 the US dollar weakened by 1.1% vs the U.S. dollar. For more info on the US dollar, click here.
Year-on-year economic growth fell in Q2 from Q1 on softer expansions in both private and public consumption. However, exports rose at a faster clip and fixed investment fell at a slower pace. Shifting to Q3, our Consensus is for GDP to have accelerated, and available data backs this projection. In July–August, economic activity expanded at a sharper rate than in Q2, boosted by sturdier momentum in the industrial sector and a smaller contraction in the construction sector. In addition, goods exports growth ticked up in Q3 from Q2. Meanwhile, inflation remained subdued in the quarter, and the rise in remittances inflows roughly matched Q2’s pace, likely supporting private spending. In other news, in mid-October, El Salvador signed a customs deal with the U.S., boding well for trade between the two countries.
Projections out to 2034.

41 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 20 expert analysts.

Want to get insight on the economic outlook for El Salvador in the coming years? FocusEconomics collects projections out to 2034 on 41 economic indicators for El Salvador from a panel of 20 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the El Salvador economy. To download a sample report on the El Salvador's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

El Salvador Economic Data

2019 2020 2021 2022 2023
Population (million) 6.3 6.3 6.3 6.3 6.4
GDP (USD bn) 26.9 24.9 29.0 32.0 34.0
GDP per capita (USD) 4,280 3,960 4,600 5,049 5,344
Economic Growth (Nominal GDP, ann. var. %) 3.3 -7.3 16.5 10.1 6.3
Economic Growth (GDP, ann. var. %) 2.4 -7.9 11.9 2.8 3.5
Private Consumption (ann. var. %) 1.7 -8.1 9.5 2.5 3.4
Government Consumption (ann. var. %) 0.5 8.7 9.0 -1.2 3.2
Fixed Investment (ann. var. %) 6.3 -7.2 25.3 4.3 8.9
Exports (G&S, ann. var. %) 8.5 -24.1 29.8 9.1 5.2
Imports (G&S, ann. var. %) 4.2 -14.4 28.8 0.9 -1.4
Unemployment (% of active population, aop) 6.3 6.9 7.2 5.0 5.2
Fiscal Balance (% of GDP) -2.9 -10.3 -5.9 -2.8 -2.2
Public Debt (% of GDP) 73.7 90.8 83.9 79.2 59.1
Money (ann. var. of M2 %) 11.5 11.6 2.5 4.9 6.4
Inflation (CPI, ann. var. %, eop) 0.0 -0.1 6.1 7.3 1.2
Inflation (CPI, ann. var. %, aop) 0.1 -0.4 3.5 7.2 4.0
180-Day Deposit Rate (%, eop) 4.10 3.96 4.38 4.54 5.32
Current Account Balance (USD bn) -0.1 0.4 -1.3 -2.2 -0.5
Current Account Balance (% of GDP) -0.4 1.6 -4.4 -6.8 -1.4
Merchandise Trade Balance (USD bn) -5.7 -5.0 -8.0 -9.6 -8.9
Merchandise Exports (USD bn) 4.7 3.9 5.2 5.8 5.5
Merchandise Imports (USD bn) 10.5 8.9 13.2 15.4 14.4
Merchandise Exports (ann. var. %) 0.3 -17.4 31.4 13.4 -5.5
Merchandise Imports (ann. var. %) 0.8 -14.5 47.1 17.1 -6.7
Foreign Direct Investment (USD bn) 0.6 0.0 0.4 0.2 0.8
International Reserves (USD bn) 4.4 3.1 3.4 2.7 3.1
International Reserves (months of imports) 5.1 4.1 3.1 2.1 2.6
External Debt (USD bn) 17.4 18.5 20.3 21.3 -
External Debt (% of GDP) 64.7 74.2 70.0 66.6 -

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