Economy of El Salvador
El Salvador is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, El Salvador may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, El Salvador exports around $5.11 billion and imports roughly $10.03 billion. 4.5% of population in the country are unemployed. The total number of unemployed people in El Salvador is 288,520. In El Salvador, 35% of the population lives below the poverty line. The percentage of citizens living below the poverty line in El Salvador is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 3.6% of GDP. The Gini Index of the country is 46.9. El Salvador is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. El Salvador has a Human Development Index (HDI) of 0.662. El Salvador has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The Global Peace Index (GPI) for El Salvador is 2.263. The strength of legal rights index for El Salvador is 9. Overall, it is considered to be rather strong - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders quite well; credit information is abundant and easily accessible.
The currency of El Salvador is United States dollar. The United States dollar is one of the most significant currencies in the world, and is used in several territories besides The United States including Puerto Rico, Guam, and The US Virgin Islands. The United States dollar is a stable currency that can be relied upon for investment opportunities. The plural form of the word United States dollar is dollars. The symbol used for this currency is $, and it is abbreviated as USD. The United States dollar is divided into Cent; there are 100 in one dollar.
The depth of credit information index for El Salvador is 7, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, El Salvador has a credit rating score of BB-, and the prospects of this rating are stable. According to the Fitch credit-rating agency, El Salvador has a credit rating score of BB-, and the prospects of this rating are stable. According to the Moody's credit-rating agency, El Salvador has a credit rating score of Ba2, and the prospects of this rating are stable.
The prime lending rate of El Salvador's commercial banks is 6. In El Salvador, the institution that manages the state's currency, money supply, and interest rates is called Central Reserve Bank of El Salvador. Locally, the central bank of El Salvador is called Banco Central de Reserva de El Salvador.
El Salvador has a government debt of 24.4% of the country's Gross Domestic Product (GDP), as assessed in 2014.
The corporate tax in El Salvador is set at 30%. Personal income tax ranges from 0% to 30%, depending on your specific situation and income level. VAT in El Salvador is 13%.
The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in El Salvador is $51193 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in El Salvador was last recorded at $8 million. PPP in El Salvador is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in El Salvador is 24,259 billion. Based on this statistic, El Salvador is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in El Salvador was last recorded at $4 million. The average citizen in El Salvador has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in El Salvador averaged 1.7% in 2014. According to this percentage, El Salvador is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of El Salvador.
Major industries in the country are food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals. The total labor force of El Salvador is 2,844,190 people, wherein 4.5% of population in the country are unemployed. The total number of unemployed people in El Salvador is 288,520. The Industrial Production growth rate of El Salvador is 0.9%.To read more about industrial information within El Salvador click on industry of El Salvador.
There are 6500 km2 of arable land in El Salvador, and it comprises 31% of the country's total territory. There are 8962 km2 of cultivated land in El Salvador. The country's major agricultural crops and products are coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum, beef, dairy products.To read more about agriculture click on agriculture of El Salvador.