|Knit socks & hosiery|
|Light rubberized knitted fabric|
El Salvador, officially the Republic of El Salvador, is the smallest and the most densely populated country in Central America. El Salvador's capital and largest city is San Salvador. As of 2015, El Salvador had a population of approximately 6.38 million, making it the most densely populated country in the region. Its population consists largely of Mestizos of European and Indigenous American descent.
Despite the global and domestic shocks of 2008-2009, the banking sector remains sound. Salvadoran banks were not directly exposed to the global financial crisis. However, the parent banks of several major Salvadoran banks were and directed subsidiaries to conserve risk capital. The higher risk aversion and recession in the United States, combined with uncertainty about the 2009 elections, led to a sharp economic downturn, and a decline in both credit demand and supply. Banks' nonperforming loans increased and profitability declined. Even so, capitalization remained high. Stress tests indicate that most banks would be able to withstand large deposit withdraws and severe deterioration in credit quality arising from large macroeconomic or sectorial shocks. However, credit concentration risks appear significant. Regulated non-bank financial institutions do not pose significant risks, but pension funds' poor profitability is a concern for the long-term. Regulated cooperative banks and insurance companies report healthy financial indicators. Brokerage houses have reduced drastically their fund management activities, which until recently posed systemic risks due to inadequate regulations and unsound commercial practices. Pension funds have grown considerably and now amount to 25 percent of total financial sector assets. However, investments are mostly in low-yielding public sector securities. To ensure a sound financial footing for the pension system, an in-depth actuarial analysis should evaluate pension reform costs and calculate replacement rates. The type of investments available to pension funds should be expanded progressively to increase diversification, improve returns and foster capital markets.
|Agriculture||Coffee, sugar, cotton, wheat, rice & corn.|
|Manufacture||Food processing, petroleum, chemicals, fertilizer, textile, furniture & light metal.|
|Services (Including financial)||60.1% (2013 estimate)|
|HSBC El Salvador||Banking|
|Empresas ADOC||Consumer goods|
|Claro El Salvador||Telecom|
|Tigo El Salvador||Telecom|
|Knit socks & hosiery|
|Light rubberized knitted fabric|
The Salvadoran Stock Exchange, Bolsa de Valores de El Salvador (BVES) is the stock exchange in the nation of El Salvador. The exchange is used for the securitization of various government infrastructure projects. The exchange was established in 1992. It is overseen by Central Securities Depository (CEDEVAL). The market grew from handling U.S. $600 million initially to more than U.S. $3 billion by 2006 and almost $6 billion by the end of 2011. Rolando Duarte was chief of the BVES as of 2013. In 2009 there were 34 companies trading on the exchange, the vast majority in finance or insurance businesses.
Since the end of the conflict, El Salvador has made significant progress towards consolidating peace and democracy. The country's political transformation led to major structural reforms and stable macroeconomic policies that resulted in strong economic performance (average yearly growth of around 6%) during the 1990s. Poverty levels in the country declined significantly between 1991 and 2002 (about 27 percentage points), with extreme poverty dropping by half over the same period. There were also important social advances, as an infant and maternal mortality rates were reduced and school enrollment and access to reproductive health and water services increased.
After average economic growth of 2% during the last 15 years, GDP growth in El Salvador reached 4.7% in 2007. However, the effects of the global financial crisis in 2008 resulted in a drop in exports and remittances, higher levels of unemployment and rising food and energy prices. Between 2007 and 2008, the percentage of people in poverty increased from 34.6% to 40%. However, in 2012, the poverty rate was 34.5%, a figure that decreased to 28.9% in 2013, according to the latest survey of the Ministry of Economy of El Salvador. The Salvadoran economy experienced a GDP contraction of 3.1% in 2009, and in response to the effects of the economic downturn, the Government formulated the Anti-Crisis Plan, with a stimulus package of nearly US$600 million that included measures to mitigate the effects of the crisis.
The Salvadoran economy has begun to recover at a slow pace: it registered a 2% growth in 2011; 1.6% in 2012 and 1.9% in 2013. According to official data the Salvadoran economy is estimated to grow by 2.1% in 2014. However, there are still many challenges. Crime and violence threaten social development and economic growth in El Salvador and negatively affect the quality of life of its citizens. After a sharp and sustained increase in the levels of violent crime since 2000, the murder rate peaked at 71 homicides per 100,000 inhabitants in 2009, declining slightly to 69 in 2011. An ongoing truce between rival street gangs has further reduced homicide rates in El Salvador since the pact began in March of 2012 to 39,6 homicides per 100,000 inhabitants by the end of 2013. El Salvador's vulnerability to adverse natural events, exacerbated by environmental degradation and extreme climate variability, also compromises the country's sustainable development and long-term economic growth. In 2011, Tropical Depression 12E hit El Salvador, affecting more than 1.4 million people and causing $902 million in damages and losses.
El Salvador was for centuries inhabited by several Mesoamerican nations, especially the Cuzcatlecs, as well as the Lenca and Maya. In the early 16th century, the Spanish Empire conquered the territory, incorporating it into the Viceroyalty of New Spain. In 1821, the country achieved independence from Spain as part of the First Mexican Empire, only to further secede as part of the Federal Republic of Central America in 1823. Upon the republic's dissolution in 1841, El Salvador became sovereign until forming a short-lived union with Honduras and Nicaragua called the Greater Republic of Central America, which lasted from 1895 to 1898.
From the late 19th to the mid-20th century, El Salvador endured chronic political and economic instability characterized by coups, revolts, and a succession of authoritarian rulers. Persistent socioeconomic inequality and civil unrest culminated in the devastating Salvadoran Civil War (1979–1992), which was fought between the military-led government and a coalition of left-wing guerrilla groups. The conflict ended with a negotiated settlement that established a multiparty constitutional republic, which remains in place to this day. El Salvador's economy was historically dominated by agriculture, beginning with the indigo plant (añil in Spanish), the most important crop during the colonial period, and followed thereafter by coffee, which by the early 20th century accounted for 90 percent of export earnings. El Salvador has since reduced its dependence on coffee and embarked on diversifying the economy by opening up trade and financial links and expanding the manufacturing sector. The colon, the official currency of El Salvador since 1892, was replaced by the U.S. dollar in 2001.
As of 2010, El Salvador ranks 12th among Latin American countries in terms of the Human Development Index and fourth in Central America (behind Panama, Costa Rica, and Belize) due in part to ongoing rapid industrialization. However, the country continues to struggle with high rates of poverty, inequality, and crime. Early in the new millennium, El Salvador's government created the Ministerio de Medio Ambiente y Recursos Naturales – the Ministry of Environment and Natural Resources (MARN) and began promoting the integration of climate change into national policy. This move was in response to the increase in extreme weather events affecting the country. Initially MARN aimed to fulfil the country’s obligations following its ratification of the UNFCCC and the Kyoto protocol However, since Hurricane Ida in 2009, the government’s stance has shifted towards integrating risk reduction into all areas of policy, including financial.
In a specific effort to increase the resilience of its economy and people to climate-related events, El Salvador commissioned a project in 2011 to develop and implement a National Policy and Strategy for Climate Change, which culminated with the launch of the National Environmental Policy in June 2012 and the National Environmental Strategy in June 2013, both incorporating climate change goals. This work was undertaken with support from the Climate & Development Knowledge Network. The government is now preparing Action Plans for putting the strategy into practice.
Joaquin Eufrasio Guzman
Jose Napoleon Duarte
The colon was the currency of El Salvador between 1892 and 2001, until it was replaced by the U.S. Dollar. It was subdivided into 100 centavos and its ISO 4217 code was SVC. The plural is colones in Spanish and was named after Christopher Columbus, known as Cristobel Colón in Spanish. The symbol for the colon is a c with two slashes. The symbol "?" has Unicode code point U+20A1, and the decimal representation is 8353. In HTML it can be entered as ₡. The colon sign is not to be confused with the cent sign (¢), which has a code point U+00A2 in Unicode (or 162 in decimal), or with the cedi sign ?, which has a code point U+20B5 in Unicode (or 8373 in decimal). Nonetheless, the commonly available cent symbol '¢' is frequently used locally to designate the colon in price markings and advertisements.
In the mid-19th century, farms produced tin sheets (property sheets) with the farm's name and were used as payment to employees, the sheets only had value in the farm store that issued it, so it created a kind of monopoly. During the existence of the Central American Federation, the monetary system did not change with respect to the colonial system and continued using silver by weight as the main currency with a circulation of macaques and property sheets. Once the federation dissolved, the Salvadoran government decreed the issuance of the first national currency, "Reales", gold coins engraved with an "R" and the "Escudos (Shields)" were silver coins with an "E" engraved. In 1883, under the presidency of Dr. Rafael Zaldívar, the First Monetary Law was adopted using "Peso (weight)" as a monetary unit, discarding the Spanish system of division into 8 reales. The new law served as a basis for the metric system, where the peso was equivalent to 10 reales. At the end of the 19th century, new paper money began to play an important role as an instrument of change as a unit of measure of the value of goods and as an element of savings. The job of issuing bank notes was decreed to private banks licensed by the government
The first bank to issue banknotes was the Banco International (International Bank), founded in 1880, this bank was granted exclusive issuing, but then lost exclusivity to Banco Occidental and Banco Agricola Commercial. Under the presidency of Carloz Ezeta, the Mint was inaugurated on August 28 of 1892. On October 1 of that year as a tribute to Christopher Columbus in the Discovery of America, the Legislature reformed the monetary law and changed the name to "Colón". The exchange rate from US dollar at that time was 2 colones for a dollar. In 1919 Currency laws were amended stipulating that the coins with daily wear would be withdrawn from circulation and coins with cuts or punched out parts would not be accepted as legal tender. The amendment also prohibited the using of cards, vouchers or counterparts to replace the official currency. Furthermore, it gave the Ministry of Finance the power to control the circulation of the currency.
Despite the relative economic prosperity of the 1920s, the worldwide depression of 1929, the global drop in coffee prices and the government deregulation of the monetary system caused a national economic crisis. The main problem was the lack of a specialized institution dedicated to ensuring that currency retained its value by controlling banking activity. In response, the government of General Maximiliano Hernández Martinez hired an Englishman named Frederick Francis Joseph Powell to analyze and structure the Salvadoran banking body. In its final report, it was recommended that the banking system should be organized around a central bank to protect the currency and its value, and issue the currency and credit control. Thus through the presidential initiative on June 19, 1934, the Legislature approved the creation of the Central Bank of El Salvador, an institution whose objectives are set to control the volume of credit and demand of currency, and was also conferred the exclusive power to issue monetary kind.
|National Song||"Himno Nacional de El Salvador"|
|Currency||United States dollar (USD)|
|GDP / GDP Rank||54.787 Billion USD|
|GDP Growth Rate||2.4 Percent|
|GDP Per Captial||$8909.426 (PPP)|
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
President – Salvador Sánchez Cerén
|Website||Go to the web|
|Public Debt||59.891 Percent|
|Unemployment Rate||6.287 Percent|
|Labor Force (Occupation)||-|