The long-running civil war caused a significant decline in El Salvador’s mainly agricultural economy. Although there has been a steady recovery since the political settlement took hold, El Salvador remains one of the poorest economies in the region. The economy is also still vulnerable to the vagaries of the regional climate – hurricanes, floods and drought. There is a sizeable manufacturing sector – the largest in Central America – producing footwear, textiles, leather goods and pharmaceuticals. Hydroelectricity and imported oil are the main sources of energy. Tourism is the main service industry. Remittances from Salvadorans working abroad are a vital source of income for many families. The Flores Government adopted a number of radical measures in an effort to kick-start the economy, including fixing the Colón (the Salvadoran currency) to the US dollar. It has also made substantial investments in national infrastrusture and the education system, but these will take some time to show results. In 2004, GDP growth was 1.4 per cent. El Salvador still relies heavily on aid from the US and the EU, as well as loans from the International Monetary Fund. El Salvador is a member of the Central American Common Market.

• GDP: US$ 32.28 billion.
• Main exports: Coffee, corn, cotton, sugar and foodstuff.
• Main imports: Consumer goods, raw materials, fuels, petroleum and foodstuff.
• Main trade partners: USA, Germany, Japan and Guatemala.

Businesspeople are expected to wear suits. Although some local businesspeople speak English, a good knowledge of Spanish is important. Visiting cards are essential. The best months for business visits are September to March, avoiding the Christmas period. Office hours: Mon-Fri 0800-1200 and 1400-1600 or 1700, Sat 0800-1200.

Cámara de Comercio e Industria de El Salvador
Avd. Hermanos Bon 79 12003, Castelloni, El Salvador
Tel: 356 500.
Website: www.camaracs.es

Banco Central de Reserva de El Salvador, CENTREX
Alameda Juan Pablo Segundo, Entre 15 y 17 Avenida Norte, San Salvador, El Salvador
Tel: 281 8000.
Website: www.bcr.gob.sv