n in 2006 of the Central America-Dominican Republic
Free Trade Agreement (CAFTA), which El Salvador was the first to
ratify, has strengthened an already positive export trend. With the
adoption of the US dollar as its currency in 2001, El Salvador lost
control over monetary policy and must concentrate on maintaining a
disciplined fiscal policy. The current government has pursued
economic diversification, with some success in promoting textile
production, international port services, and tourism through tax
incentives. It is committed to opening the economy to trade and
investment, and has embarked on a wave of privatizations extending
to telecom, electricity distribution, banking, and pension funds. In
late 2006, the government and the Millennium Challenge Corporation
signed a five-year, $461 million compact to stimulate economic
growth and reduce poverty in the country's northern region through
investments in education, public services, enterprise development,
and transportation infrastructure.

GDP (purchasing power parity):

$41.63 billion (2007 est.)

GDP (official exchange rate):

$20.37 billion (2007 est.)

GDP - real growth rate:

4.7% (2007 est.)

GDP - per capita (PPP):

$6,000 (2007 est.)

GDP - composition by sector:

agriculture: 10.8%
industry: 30.8%
services: 58.4% (2007 est.)

Labor force:

2.913 million (2007 est.)

Labor force - by occupation:

agriculture: 19%
industry: 23%
services: 58% (2006 est.)

Unemployment rate:

6.2% official rate; but the economy has much underemployment (2007
est.)

Population below poverty line:

30.7% (2006 est.)

Household income or consumption by percentage share:

lowest 10%: 0.7%
highest 10%: 38.8% (2002)

Distribution of family income - Gini index:

52.4 (2002)

Investment (gross fixed):

16.1% of GDP (2007 est.)

Budget:

revenues: $3.659 billion
expenditures: $3.709 billion (2007 est.)

Fiscal year:

calendar year

Public debt:

37.3% of GDP (2007 est.)

Inflation rate (consumer prices):

4.6% (2007 est.)

Commercial bank prime lending rate:

NA

Stock of money:

$1.802 billion (31 December 2007)

Stock of quasi money:

$764.1 million (31 December 2007)

Stock of domestic credit:

$9.729 billion (31 December 2007)

Agriculture - products:

coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum; beef,
dairy products; shrimp

Industries:

food proce