ECONOMY
Industry:
The leading industrial region is the department of San Salvador. Other industrial centers are La Libertad, Santa Ana, San Miguel, Usulutan and San Vicente. There are coffee-processing plants, sugar mills, bakeries; and plants making petroleum products, vegetable oils, fats, confectionery, dairy products, tobacco, soap, candles, matches, shoes, furniture, light metals, cement, and organic fertilizers.
Growing at a rate of 4.5% in 2000, the manufacturing sector is one of the largest contributors to GDP, and, along with construction, led the economy in 2001–02. The same basic problems persist from decade to decade: the low purchasing power of the local population and the difficult financial and political situation of other Central American countries on which El Salvador depends for export markets. Nevertheless, El Salvador received substantial amounts of foreign direct investments in the industrial sector in 2001.
Agriculture:
The most important agricultural products in El Salvador are coffee, cotton, corn (maize), and sugarcane. Several species of palm and coconut trees grow in the coastal zone, and there are many varieties of tropical fruit, such as coconut, tamarind, melon, watermelon, and mango. Nontraditional agricultural products have increased in importance since the early 2000s. Nevertheless, coffee alone still accounts for a substantial part of the value of total agricultural production. Cattle raising is also an important activity.
Valuable wood is obtained from the cedar, mahogany, laurel, nispero, and madrecacao trees and is used for the manufacture of furniture. The trunk of the balsa tree yields excellent lumber as well as resin that is used in the manufacture of antiseptics and medicinal gums. It is also used for fuel.
Commercial fishing, regulated by the government, has added to the country’s export earnings. Most of the fish caught commercially or for sport come from offshore waters and coastal lagoons; they consist chiefly of crustaceans (including lobster and shrimp), mullet, snappers, jacks, groupers, sharks, and anchovies.
Research & Development:
El Salvador has research institutes devoted to the study of seismology and geology, meteorology and hydralogy, agriculture (including the Salvadoran Institute for the Study of Coffee), and medicine. The principal learned society in the country is the El Salvador Academy, headquartered in San Salvador. In the same city are museums devoted to natural history and zoology.
Nine colleges and universities offer degrees in basic and applied sciences. In 1987–97, science and engineering students accounted for 59% of college and university enrollments. In 1992, research and development expenditures totaled 1.08 billion colones; in 1987–97, 356 technicians and 20 scientists and engineers per million people were engaged in research and development.