Business Profile
Economy
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. The principal commercial crop is coffee, which is the country’s major export earner. Other important crops are cotton, sugar, maize, beans and rice; in addition, shrimps and honey have become important export commodities. 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. The USA is the country’s largest trading partner, followed by Guatemala, Germany and Japan.
Business
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 0900-1730, Sat 0800-1200.
Commercial Information
The following organisations can offer advice: Cámara de Comercio e Industria de El Salvador, Avd. Hermanos Bon 79 12003 Castelloni (tel: 356 500; fax: 356 510; e-mail: camarainforma@camaracs.es or cocincs@camaracs.es; website: www.camaracs.es); or Banco Central de Reserva de El Salvador, CENTREX, Alameda Juan Pablo Segundo, Entre 15 y 17 Avenida Norte, San Salvador (tel: 281 8000; fax: 281 8113; e-mail: comunicaciones@bcr.gob.sv; website: www.bcr.gob.sv).
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