Economic Survey of Latin America and the Caribbean 2001-2002

image of Economic Survey of Latin America and the Caribbean 2001-2002

This survey consists of two distinctive parts. The first part examines main aspects of the regional economy, while the second part contains an analysis of the individual countries in Latin America and the Caribbean. The part on the regional economy covers the situation in the first semester of 2002 and the prospects for the year as a whole. It also analyzes various aspects of the regional economy in 2001, including macroeconomics policies and reforms, the performance of the internal economy, and the external sector. The part on individual countries covers 20 nations in Latin America and the English-speaking Caribbean. It covers the period 2001 and early 2002, revealing country reports with tables and figures showing main economic indicators.



El Salvador

In 2001 the Salvadoran economy continued to slow down for the fourth year in a row, with GDP growth reaching only 1.8%; as a result, there was almost no growth in per capita output. The adverse situation of the world economy was reflected in a decline in maquila exports and a drastic fall in international coffee prices, which eroded the terms of trade. The country was hit at the beginning of the year by two earthquakes, and later by a serious drought. A steady stream of family remittances, however, equivalent to 14% of GDP, and an increase in public investment for rebuilding damaged areas staved off a more serious contraction in domestic demand, although public finances became more fragile. Meanwhile, inflation remained under control and exhibited a downward tendency, encouraged by the entry into force of the Monetary Integration Act, which fixed the exchange rate and established the United States dollar as the unit of account.


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