El Salvador - Economic History

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El Salvador Economic History El Salvador Economic History

El Salvador is the smallest but most densely populated (density per sq mile is 853 ) Latin American republic . According to the Columbia Encyclopaedia , its population is 6 ,822 ,378 with a growth rate of 1 .7 per annum . The vast majority of the population is of mixed indigenous and European descent (The Columbia Electronic Encyclopaedia

In the 1990s , El Salvador implemented a new economic policy reducing government expenses , privatizing state-owned enterprises , and adopting the dollar as its national currency . El

Salvador is considered the 12th most open economy in the world , but , after posting strong growth rates in the 1990s , it has registered only 2 but it picked up in 2005 to 2 .8 percent (Salvador Lags Despite Trade Winds , 2005 ) According to World Bank reports , its national economy is chiefly agricultural and it comprises 1 /4 of the GNP and 40 of the employment . Previously , the economic growth rated stagnated at 2 annually but it picked up in 2005 to 2 .8 percent , According to the World Bank fact sheets its key economic indicators are as below (World Bank , 2006 ) GDP per capita (2005 US 2 ,450 (But according to UN human development index reports , its Gross domestic product (in purchasing power parity ) is US 5041 .GDP (2005 17 billion . 37 percent of the population lives below the national poverty line roughly 15 percent of the population lived in extreme poverty (under 1 dollar a day ) in 2002 (World Bank ) Another feature of El Salvador is its thriving literacy rate . According to certain reports its literacy rate is about 80 .It is ranked 101 on United Nations Human development (Education ) Index (UNDP , 2006

CIA world Factbook estimates that inflation rate was 4 .7 in 2005 Previously El Salvador has very high inflation rates as 19 .9 in 1992 1 .9 in 1997 . Despite the enormous economic damage by hurricane Mitch El Salvador managed to reduce its inflation to 4 .2 in 1998 , one of the lowest in the region (Business Climate

References

World Bank . El Salvador : Competitiveness , Business Climate and Key Economic Indicators . April 2005

http /web .worldbank .org /WBSITE /EXTERNAL /COUNTRIES /LACEXT /ELSALVADOREXTN /0 ,contentMDK : menuPK :295249 pagePK :1497618 piPK :217854 theSite PK :295244 ,00 .html United Nations Develpment Programme . Human Dvelopment Report 2006 Country Report : El Salvador . 2006

http /hdr .undp .org /hdr2006 /statistics /countries /data_sheets /cty_ds_SLV html The Columbia Electronic Encyclopedia , 6th ed . Columbia University Press 2006 Business Climate . Embassy of El Salvador in the United States of America

http /www .elsalvador .org /home .nsf /0 /6d3ffe8c36ab06005de6b3 ?Op enDocument CIA World Factbook . El Salvador

https /www .cia .gov /cia /publications /factbook /geos /es .html Salvador Lags Despite Trade Winds ' Chicago Tribune , March 24 , 2005...