Thursday, April 21, 2005

El Salvador lowest in projected economic growth

The Economic Commission for Latin America and the Caribbean (ECLAC) issued a report on the economic prospects for Latin America during the coming year. ECLAC is a regional economic commission of the United Nations.

The study projects economic growth in El Salvador of only 2.5% in 2005. While this compares favorably to the 1.4% growth experienced in 2004, it is the lowest of the 19 countries in the region. In contrast, the average expected growth for Mexico and Central America is 3.7% and 4.4% for all of Latin America and the Caribbean.

The study noted that the anemic growth in 2004 was caused by a decline in the level of maquiladora factory activity, high fuel prices, and a decline in investment.

Meanwhile, remittances from abroad continue to increase. Salvadorans living outside of the country have sent back $670 million in the first 3 months of this year, almost a 20% increase over 2004. Remittances make up as much as one sixth of the total economy. El Salvador's most important export is probably its people.

1 comment:

Anonymous said...

Hello Tim.

Very interesting facts about a forgotten country, so to speak.

My husband is originally from El Salvador and has difficulty recognizing, or more so, coming to terms with their level of poverty.

He moved to Canada when he was 15 years old, just after the civil war. In discussions about El Salvador, we talk about the poverty, and the lack of resources. Many times our discussions can become heated, as he is devoted to his homeland, although Canada has been his home for over 15 years now.

I thank you for the information on this country, as this will hopefully give him some insight on the happenings of his birth country.

Angela Hernandez