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| *Travel Tips>>>El Salvador Travel Tips |
Does EL Salvador have a traditional, market or command economy? |
Travel Info Does EL Salvador have a traditional, market or command economy? Travel Tips For the longest time, El Salvador had a traditional ecomy. Although they still do, they are rapidly moving towards a market economy based on imports and outsourcing from the US and other developed nations. The smallest country in Central America, El Salvador has the third largest economy, but growth has been minimal in recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement, which El Salvador was the first to ratify, has strengthened an already positive export trend. The trade deficit has been offset by annual remittances from Salvadorans living abroad - equivalent to more than 16% of GDP - and external aid. With the adoption of the US dollar as its currency in 2001, El Salvador has lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy. The current government has pursued economic diversification, with some success in promoting textile production, international port services, and tourism. It is committed to opening the economy to trade and investment, and has embarked on a wave of privatizations extending to telecom, electricity distribution, banking, and pension funds. Source(s): https://www.cia.gov/cia/publications/fac... Other Travel Tips |
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