El Salvador Export Data

El Salvador's Import/Export Overview and Domestic Market Update

Imports & Exports

• Top Trade Partners: El Salvador's principal trading partners are the United States, Guatemala, and Honduras, reflecting its regional and global trade dynamics.

• Top 5 Imports: Petroleum products, machinery, vehicles, pharmaceuticals, and plastics make up a significant portion of El Salvador's imports, with petroleum alone accounting for a notable 10% of total imports.

• Top 5 Exports: Textiles, coffee, sugar, gold, and fruits are the leading exports, with textiles contributing to nearly 20% of total exports, showcasing the country's reliance on specific industries.

• Trade Balance: El Salvador experiences a trade deficit, importing more than it exports. This situation is closely monitored as it impacts the country's economic stability and its currency, the US dollar.

• Trade Policy: The country adheres to the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) and other regional trade agreements, which aim to reduce barriers and foster economic integration.

Domestic Market

• Consumer Spending: Consumer spending is pivotal in driving the economy, but factors such as economic uncertainty and inflation can dampen consumer confidence.

• Interest Rates and Inflation: Inflation rates have been a concern, leading to adjustments in interest rates by the central bank, which in turn affect borrowing costs and consumer purchasing power.

• Supply Chain Dynamics: Supply chain disruptions have led to higher prices and availability issues, particularly in industries reliant on imported goods, such as manufacturing and agriculture.

• Industry Performance: The textile industry, remittances, and tourism are key sectors showing resilience and growth. However, challenges exist, especially in sectors like agriculture that are affected by climate change.

Overall Outlook

El Salvador's economy, while facing challenges such as trade deficits and inflation, is bolstered by strong export sectors and strategic trade agreements. The government's focus on diversifying the economy and improving infrastructure could lead to positive long-term outcomes.