Editing Economy of El Salvador (section)

== Economic sectors ==

=== Remittances ===
[[File:PoblacionSalvadoreñoenlosEstadosUnidos.png|left|thumb|[[Salvadoran American]] population in the United States]]
Remittances from Salvadorans working in the United States sent to family members are a major source of foreign income and offset the substantial [[trade deficit]] of around $2.9 billion. Remittances have increased steadily in the last decade and reached an all-time high of $2.9 billion in 2005—approximately 17.1% of gross national product ([[Gross national product|GNP]]).

Remittances have had positive and negative effects on El Salvador. In 2005, the number of people living in [[extreme poverty]] in El Salvador was 20%,<ref>{{cite news|url=http://www.redsolidaria.gob.sv/content/view/677/46/1/1/|title=Objetivos de Desarrollo del Milenio|access-date=23 May 2007|archive-url=https://web.archive.org/web/20070527082755/http://www.redsolidaria.gob.sv/content/view/677/46/1/1/|archive-date=27 May 2007|language=es}}
<!-- see http://www.mh.gob.sv/portal/page/portal/PCC/Boletin2010/Bolet%EDn_Presupuestario_Octubre-Diciembre_20101.pdf for an update-->
</ref> according to a United Nations Development Program report. While Salvadoran education levels have gone up, wage expectations have risen faster than productivity. This has led to an influx of Hondurans and Nicaraguans who are willing to work for the prevailing wage. Also, the local propensity for consumption has increased. Money from remittances has increased prices for certain commodities such as real estate. With much higher wages, many Salvadorans abroad can afford higher prices for houses in El Salvador and thus push up the prices that all Salvadorans must pay.<ref>{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2006/05/13/AR2006051300879_pf.html|title=Money Earned in U.S. Pushes Up Prices in El Salvador|newspaper=The Washington Post|date=13 May 2006|access-date=2 May 2010|first=N.C.|last= Aizenman}}</ref>

=== Agriculture ===
<gallery widths="200px" heights="110px">
File:Cotton-UsulutanSV.jpg|A cotton field, Usulután Department.
File:Dark roasted espresso blend coffee beans 2.jpg|Dark roasted coffee beans from [[Coffee production in El Salvador]]
</gallery>
In 2018, El Salvador produced 7 million tons of [[sugarcane]], being heavily dependent on this product. In addition to sugarcane, the country produced 685 thousand tons of [[maize]], 119 thousand tons of [[coconut]], 109 thousand tons of [[sorghum]], 93 thousand tons of [[beans]], 80 thousand tons of [[coffee]], 64 thousand tons of [[Orange (fruit)|orange]], in addition to smaller yields of other agricultural products such as [[watermelon]], [[Xanthosoma|yautia]], [[apple]], [[manioc]], [[mango]], [[banana]], [[rice]] etc.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = El Salvador production in 2018, by FAO}}</ref>

The ultimate goal was to develop a rural middle class with a stake in a peaceful and prosperous future for El Salvador. At least 525,000 people—more than 12% of El Salvador's population at the time and perhaps 25% of the rural poor—benefited from agrarian reform, and more than 22% of El Salvador's total farmland was transferred to those who previously worked the land but did not own it. But when agrarian reform ended in 1990, about 150,000 landless families still had not benefited from the reform actions.

The 1992 peace accords made provisions for land transfers to all qualified ex-combatants of both the [[Farabundo Martí National Liberation Front|FMLN]] and [[Armed Forces of El Salvador|ESAF]], as well as to landless peasants living in former conflict areas. The United States undertook to provide $300 million for a national reconstruction plan. This included $60 million for land purchases and $17 million for agricultural credits. [[United States Agency for International Development|USAID]] remains actively involved in providing technical training, access to credit, and other financial services for many of the land beneficiaries.

===Energy===
<gallery widths="200" heights="110">
File:Central Geotérmica Ahuachapán 02.jpg|Geothermal power plant in [[Ahuachapan Department]]
File:Central Geotérmica de Berlín 05.JPG|[[Geothermal power]] center in the [[Usulután Department]]
File:Rio Lempa Presa Enero 2011.jpg|Central [[hydroelectricity]] dam over the [[Lempa River]]
</gallery>
El Salvador's [[energy]] industry is diversified across [[fossil fuel]]s, [[Hydroelectricity|hydro]], other [[Renewable Energy|renewables]] (mainly [[Geothermal Energy|geothermal]]) for local electricity production, along with a reliance on imports for [[Petroleum|oil]]. El Salvador has an installed capacity of 1,983 [[Watt#Megawatt|MW]] generating 5,830 [[Watt#Gigawatt|GWh]] of [[electricity]] per year, 52% of this comes from renewable sources including 29% from geothermal (produced from the country's many [[Geography of El Salvador#Physical features|volcanoes]]), 23% from hydro and the rest is from fossil fuels.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/el-salvador/#energy|title = El Salvador|date = 25 October 2021}}</ref>

According to the National Energy Commission, 94.4% of total injections during January 2021 came from hydroelectric plants (28.5% - 124.43 GWh), geothermal (27.3% - 119.07 GWh), biomass (24.4% 106.43 GWh), photovoltaic solar (10.6% - 46.44 GWh) and wind (3.6% - 15.67 GWh).<ref>{{cite web |last1=Singh |first1=Nanda |title=Las energías renovables crecen mientras las tarifas eléctricas disminuyen en El Salvador |url=https://www.energiaestrategica.com/las-energias-renovables-crecen-mientras-las-tarifas-electricas-disminuyen-en-el-salvador/ |website=energiaestrategica.com |date=10 February 2021 |publisher=energía estrategica |access-date=16 September 2021}}</ref>

{| class="wikitable sortable" style="text-align:center;" align="center"
|- align="center"
! Forms of energy || 2021<br /> ([[Watt-hour|GWh]]) || %
|- align="center"
| Hydroelectric energy || 124.43|| 28.5
|- align="center"
| Geothermal energy || 119.07 || 27.3
|- align="center"
| Biomass|| 106.43 || 24.4
|- align="center"
| Solar photovoltaic|| 46.44 || 10.6
|- align="center"
| Wind|| 15.67 || 3.6
|- align="center"
| Total || 412.04 || 94.4
|- align="center"
|}

===Manufacturing===
El Salvador historically has been the most industrialized state in Central America, though a decade of war eroded this position. In 1999, manufacturing accounted for 22% of GDP. The industrial sector has shifted since 1993 from a primarily domestic orientation to include free zone ([[maquiladora]]) manufacturing for export. Maquila exports have led the growth in the export sector and in the last 3 years{{when|date=November 2021}} have made an important contribution to the Salvadoran economy.

=== Mining ===
{{Main|Mining in El Salvador}}
Mining in El Salvador expanded in scope from [[artisanal mining]] to industrial mining at the San Sebastián mine in the 1970s. Chemicals from that mine polluted the San Sebastián River.<ref name=":4">{{Cite web |last=Dinur |first=Esty |date=2018-04-01 |title=How El Salvador Won on Mining |url=https://progressive.org/api/content/355031ae-36b6-11e8-b166-121bebc5777e/ |url-status=live |archive-url=https://web.archive.org/web/20230701154719/https://progressive.org/magazine/how-el-salvador-won-on-mining/ |archive-date=2023-07-01 |access-date=2023-07-01 |website=[[The Progressive]] |language=en-us}}</ref>

Mining ceased during the [[Salvadoran Civil War]]. After the war, the country's right-wing government proposed 33 mining zones, issuing exploration licences to American, Australian, and Canadian companies. The plan was met with opposition of many local community and community leaders, who successfully blocked exploration in [[Chalatenango, El Salvador|Chalatenango]] in 2005.<ref name=":4" />

[[Pacific Rim Mining Corporation]] obtained a permit to explore the [[El Dorado gold mine (El Salvador)|El Dorado gold mine]] in 2002,<ref name=":1">{{Cite web |last=Gutiérrez |first=Raúl |date=2009-05-18 |title=EL SALVADOR: Gold Mining 'Is a Huge Rip-Off' - Environmentalists |url=http://www.ipsnews.net/news.asp?idnews=45035 |url-status=dead |archive-url=https://web.archive.org/web/20090518165007/http://www.ipsnews.net/news.asp?idnews=45035 |archive-date=18 May 2009 |access-date=2023-07-01 |website=[[Inter Press Service]]}}</ref> but were denied a license to mine in 2008, following local opposition.<ref name=":5">{{Cite web |last=Wallace |first=Janet MacGillivray |date=2010-05-29 |title=Will the World Bank undermine the people of El Salvador in mining dispute? |url=https://grist.org/article/2010-05-28-will-the-world-bank-undermine-the-people-of-el-salvador-in-pacif/ |url-status=live |archive-url=https://web.archive.org/web/20221216040756/https://grist.org/article/2010-05-28-will-the-world-bank-undermine-the-people-of-el-salvador-in-pacif/ |archive-date=2022-12-16 |access-date=2023-07-01 |website=Grist |language=en-us}}</ref>

Mining for metal was banned in 2017,<ref name=":62">{{Cite web |last=Radwin |first=Maxwell |date=2023-02-07 |title=Is El Salvador preparing to reverse its landmark mining ban? |url=https://news.mongabay.com/2023/02/is-el-salvador-preparing-to-reverse-its-landmark-mining-ban/ |url-status=live |archive-url=https://web.archive.org/web/20230401003415/https://news.mongabay.com/2023/02/is-el-salvador-preparing-to-reverse-its-landmark-mining-ban/ |archive-date=2023-04-01 |access-date=2023-07-01 |website=[[Mongabay]] |language=en-US}}</ref><ref name=":3">{{Cite web |last=Schalk |first=Owen |date=2 May 2023 |title=El Salvador's Historic Metal Mining Ban Is in Danger |url=https://jacobin.com/2023/02/el-salvador-mining-ban-threat-water-pollution-nayib-bukele |url-status=live |archive-url=https://web.archive.org/web/20230331213344/https://jacobin.com/2023/02/el-salvador-mining-ban-threat-water-pollution-nayib-bukele/ |archive-date=2023-03-31 |access-date=2023-07-01 |website=[[Jacobin (magazine)|Jacobin]] |language=en-US}}</ref> although the creation of a mining regulator in 2021<ref name=":62"/> and the arrest of anti-mining activists in 2023 prompted public speculation that the government is considering resuming mining.<ref>{{Cite news |last=Lakhani |first=Nina |date=2023-01-14 |title=Salvadoran environmental defenders detained for decades-old crimes |language=en-GB |work=The Guardian |url=https://www.theguardian.com/world/2023/jan/14/el-salvador-environmental-defenders-arrested-mining-ban |url-status=live |access-date=2023-07-01 |archive-url=https://web.archive.org/web/20230525074824/https://www.theguardian.com/world/2023/jan/14/el-salvador-environmental-defenders-arrested-mining-ban |archive-date=2023-05-25 |issn=0261-3077}}</ref>

===Telecommunications===
{{main|Telecommunications in El Salvador}}
El Salvador has 0.9 million fixed telephone lines, 0.5 million fixed broadband lines and 9.4 million mobile cellular subscriptions.<ref name="cia.gov">{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/el-salvador/#communications|title=El Salvador|date=25 October 2021}}</ref> Much of the population is able to access the [[internet]] through their smartphones and mobile networks, which liberal government regulation promotes mobile penetration over fixed line including the deployment of [[5G]] coverage (which testing of began in 2020).<ref name="cia.gov"/> Transition to digital transmission of TV/radio networks was done in 2018 with the adaptation of the [[ISDB-T International|ISDB-T]] standard. There are hundreds of privately owned national TV networks, cable TV networks (that also carry international channels), and radio stations available; while there is also 1 government owned broadcast station.<ref name="cia.gov"/>

El Salvador's [[Information Technology|IT Industry]]'s history started early with several IT outsourcing companies such as Gpremper and an early [[search engine]] that predated [[Google]] in 1995 called "Buscaniguas".<ref>International Directory of Search Engines, ''El Salvador Search Engines'', "[http://www.searchenginecolossus.com/ElSalvador.html]", April 13, 2010</ref> The industry has since expanded with companies such as Creativa Consultores, Applaudo Studios, and Elaniin providing software and website design services to clients globally while employing thousands of people.<ref>{{Cite web|url=https://techbehemoths.com/companies/el-salvador|title = Top 10+ IT Companies in El Salvador (2021) - TechBehemoths}}</ref> Canadian [[Telus International]], a major global IT outsourcing and software development firm, has a significant workforce in the country employing nearly 1,500 people in high tech and customer service roles.<ref>{{Cite web |title=Global locations - 2021 TELUS International Annual Report |url=https://annualreport.telusinternational.com/2021-telus-international-annual-report/global-locations |url-status=live |archive-url=https://web.archive.org/web/20220906201212/https://annualreport.telusinternational.com/2021-telus-international-annual-report/global-locations |archive-date=6 September 2022 |access-date=5 October 2022 |website=TELUS International}}</ref> The startup scene has also been growing with firms such as HugoApp employing 600 locals and providing delivery and ride sharing services to nearly 1 million users in the [[Central America]]n/[[Dominican Republic–Central America Free Trade Agreement|CAFTA]] region.<ref>{{Cite web|url=https://hugoapp.com/en/empresa/|title=Empresa}}</ref><ref name="bizlatinhub.com">{{Cite web|url=https://www.bizlatinhub.com/el-salvador-tech-companies/|title=3 El Salvador Tech Companies to Watch Post-Pandemic|date=26 February 2021}}</ref><ref>{{Cite web|url=https://www.statista.com/statistics/1096382/hugo-app-figures/|title=Key figures on delivery & logistics startup hugoapp 2020}}</ref> In 2020, the government announced its "Digital Agenda 2020" a plan to digitize government services, digitize identities, make it easier to start businesses, attract foreign investment and improve the education system.<ref name="bizlatinhub.com"/> Finally, the passing of the [[Bitcoin Law]] in 2021 made El Salvador the first country in the world to adopt a [[cryptocurrency]] ([[Bitcoin]]) as legal tender, this move seeks to improve access to financial services to the non-banked and under banked while also making El Salvador a hub for innovation.

===Services===
In the 21st century, numerous [[call center]]s serving North American markets have been developed in El Salvador, including Ubiquity Global Services and [[Synnex]]. The industry benefits from the availability of a large English speaking work force, composed of deportees from the United States.<ref>{{citation|url=http://www.newyorker.com/magazine/2017/01/23/the-deportees-taking-our-calls 
|title=The deportees taking our calls: How American immigration policy has fueled an unlikely industry in El Salvador.
|date=2017-01-23|first=Jonathan|last=Blitzer|magazine=The New Yorker}}</ref>