## El Salvador: Recent Economic Developments

_IMF Staff Country Reports, May 29, 1998_

## Source details

**Canonical URL:** [El Salvador: Recent Economic Developments](https://www.imf.org/en/publications/cr/issues/2016/12/30/el-salvador-recent-economic-developments-2611)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/30/el-salvador-recent-economic-developments-2611/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/30/el-salvador-recent-economic-developments-2611/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/30/el-salvador-recent-economic-developments-2611/bundle-manifest.json)

## Bibliographic details
- Published: May 29, 1998
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451834703.002

---

### Overview
- Timeframe analyzed: 1990–97.
- Purpose: Assess economic developments in El Salvador during 1990–97 and prospects as the economy reinserts into the global economy.
- Core focus areas: evolution of trade competitiveness; divergence from equilibrium of the real effective exchange rate; implications for the current account.

### Key findings
- The exchange rate behavior in the last decade appears to have followed roughly the path predicted by a long-term equilibrium exchange rate model.
- That long-term equilibrium path is consistent with a current account deficit of about 2 percent of GDP.
- The paper describes the evolution of trade competitiveness and evaluates the divergence from equilibrium of the real effective exchange rate.

### Analysis and themes covered
- Assessment of prospects for the Salvadoran economy in facing new challenges from reinsertion into the global economy.
- Detailed description of trade competitiveness evolution.
- Evaluation of divergence of the real effective exchange rate from its equilibrium value using a long-term equilibrium exchange rate framework.

### Subject areas and keywords (as listed)
- Subjects: Balance of payments; Exchange rates; Foreign exchange; Outward remittances; Production; Real effective exchange rates; Remittances; Total factor productivity.
- Keywords: accumulated exchange rate appreciation; Central America; CR; emigration data; equilibrium exchange rate; Exchange rates; Global; INSEPRO incident; ISCR; maquila export; Outward remittances; private sector investment; Real effective exchange rates; Remittances; remittances model; Total factor productivity; trade competitiveness; Western Hemisphere.

*Source: "El Salvador: Recent Economic Developments", IMF Staff Country Reports, May 29, 1998.*

---

## Content in this bundle

- **El Salvador: Recent Economic Developments - ISCR/98/32**
  - [El Salvador: Recent Economic Developments - ISCR/98/32 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/1998/_cr9832.pdf.md){rel="alternate" type="text/markdown"}
  - [El Salvador: Recent Economic Developments - ISCR/98/32 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/1998/_cr9832.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/el-salvador-recent-economic-developments-2611_