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The Salvadoran Economy
2010 The Growth Recovery Year
At present, projections from the majority of analysts
indicate a U.S. recovery in 2010; moving the real
GDP negative growth of 3.5% in 2009 to 1% in 2010
in El Salvador.
Growth provisions for the commerce and
manufacturing industry are (1%), exports of goods
(3%), greater level of public investment (3.1% of
GDP), recovery of taxable income due to fiscal reform,
imports recovery (8%); due to greater demand of
intermediate goods and the recovery of the industry
and capital goods sector from the reconstruction of
bridges and other communication roads caused by
Tropical Storm Ida in November 2009.
Ministry of Treasury 2010 Provisions derived from
IMF and Central Reserve Bank sources.
GDP: 22,480 million Dollars
Exports: 3900 million Dollars
Imports: 7480 million Dollars
Import of Goods Growth Rate: 8.3%
Export of Goods Growth Rate: 1.6%
Balance Commercial Account: -3580 million Dollars
Family Remittances: 3405 million Dollars
Tributary revenues: 2770 million Dollars
Tributary Burden: 14.2% of GDP
Public Investment: 3.1% of GDP
Current Savings; -0.1% of GDP
Non-Financed Public Sector Deficit:
-5.0 (% of GDP)
Non-Financed Public Sector Debt: 47.7% of GDP
Nominal GDP Growth: 3.6% to 4.5%
Real GDP Growth: 0.5% to 1.0%
Inflation Rate: 2.5% to 3.5%
Tax Reform
Another important point to highlight will be the
impact of the fiscal reform which is yet to be
defined. The point is to improve public finances and
revitalize social expenditure. Efforts must be done
to increase State revenues, reduce dependency
of international cooperation and improve public
administration for a more efficient expenditure. The
tributary reform is expected to obtain this first point.
Tributary burden in 1990 was 9.1% of the GDP
reaching 13.2% in 2009. It still is one of the smallest
in its environment. With the first phase of the
reform approved in December 2009, the Legislative
Assembly expects to collect some $250USD
million with the new taxes on consumption of
specific products and an effort to reduce elusion
and evasion, reaching 14.2% of the gross tributary
burden in 2010 and through future reforms to 17%
in 2013, according to the Ministry of Treasure.
International Reserves
Net international reserves were 2.540 million
Dollars at the end of 2008, which allows covering 3
months of imports.
Taca Airlines has its Central American hub in El Salvador