Editing El Salvador (section)

==Economy==
{{Main|Economy of El Salvador}}
[[File:GDP per capita development in El Salvador, Guatemala and Honduras.svg|thumb|right|Historical GDP per capita development of El Salvador, Guatemala and Honduras]]
El Salvador's economy has been hampered at times by natural disasters such as earthquakes and hurricanes, by government policies that mandate large economic subsidies, and by official corruption. Subsidies became such a problem that in April 2012, the International Monetary Fund suspended a $750&nbsp;million loan to the central government. President Funes' chief of cabinet, Alex Segovia, acknowledged that the economy was at the "point of collapse".<ref>{{cite news |last1=Quintanilla |first1=Lourdes |title=FMI suspende acuerdo de préstamo con el país |url=http://www.laprensagrafica.com/economia/nacional/259909-fmi-suspende-acuerdo-de-prestamo-con-el-pais.html |access-date=17 March 2020 |work=La Prensa Grafica |date=26 April 2012 |archive-url=https://web.archive.org/web/20120702214809/http://www.laprensagrafica.com/economia/nacional/259909-fmi-suspende-acuerdo-de-prestamo-con-el-pais.html |archive-date=2 July 2012}}</ref>

Gross domestic product ([[Gross domestic product|GDP]]) in [[purchasing power parity]] estimate for 2021 is US$57.95&nbsp;billion growing real GDP at 4.2% for 2021.<ref name="IMFWEOSV">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2021/April/weo-report?c=253,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,LUR,&sy=2019&ey=2023&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database, April 2021 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=1 July 2021 |archive-date=9 July 2021 |archive-url=https://web.archive.org/web/20210709183151/https://www.imf.org/en/Publications/WEO/weo-database/2021/April/weo-report?c=253,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,LUR,&sy=2019&ey=2023&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live }}</ref> The service sector is the largest component of GDP at 64.1%, followed by the industrial sector at 24.7% (2008 est.) and agriculture represents 11.2% of GDP (2010 est.). The GDP grew after 1996 at an annual rate that averaged 3.2% real growth. The government committed to free market initiatives and the 2007 GDP's real growth rate hit 4.7%.<ref>{{cite web |title=Gross Domestic Product, annual rates, main economic sectors |publisher=[[Banco Central de Reserva de El Salvador]] |url=http://www.bcr.gob.sv/ingles/estadisticas/sr_produccion.html |access-date=17 November 2007| archive-url = https://web.archive.org/web/20071107150307/http://www.bcr.gob.sv/ingles/estadisticas/sr_produccion.html| archive-date = 7 November 2007}}</ref> As of December 2017, net [[Foreign exchange reserves|international reserves]] stood at $3.57&nbsp;billion.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/el-salvador/#economy|title=El Salvador - The World Factbook|website=www.cia.gov|date=July 2022|access-date=9 July 2021|archive-date=21 March 2022|archive-url=https://web.archive.org/web/20220321170220/https://www.cia.gov/the-world-factbook/countries/el-salvador#economy|url-status=live}}</ref>

It has long been a challenge in El Salvador to develop new growth sectors for a more diversified economy. In the past, the country produced gold and silver,<ref>{{cite web |last1=Oancea |first1=Dan |title=Mining in Central America |url=http://magazine.mining.com/Issues/0901/MiningCentralAmerica.pdf |website=MINING.com |access-date=17 March 2020 |archive-url=https://web.archive.org/web/20110516031334/http://magazine.mining.com/Issues/0901/MiningCentralAmerica.pdf |archive-date=16 May 2011 |date=January 2009 }}</ref> but recent attempts to reopen the mining sector, which were expected to add hundreds of millions of dollars to the local economy, collapsed after President Saca shut down the operations of [[Pacific Rim Mining Corporation]]. Nevertheless, according to the Central American Institute for Fiscal Studies (Instituto Centroamericano for Estudios Fiscales), the contribution of metallic mining was a minuscule 0.3% of the country's GDP between 2010 and 2015.<ref>{{cite web|url=http://icefi.org/noticias/estudio-sobre-mineria-metalica-en-triangulo-norte-se-presenta-en-el-salvador|title=Estudio sobre minería metálica en triángulo norte se presenta en El Salvador|date=7 April 2017|access-date=29 December 2017|archive-date=25 August 2017|archive-url=https://web.archive.org/web/20170825035318/http://www.icefi.org/noticias/estudio-sobre-mineria-metalica-en-triangulo-norte-se-presenta-en-el-salvador|url-status=live}}</ref> Saca's decision although not lacking political motives, had strong support from local residents and grassroots movements in the country. President Funes later rejected a company's application for a further permit based on the risk of cyanide contamination on one of the country's main rivers.<ref>{{cite web|url=https://nacla.org/blog/2012/6/8/pacific-rim-ruling-threatens-el-salvador%25E2%2580%2599s-national-sovereignty|title=Pacific Rim Ruling Threatens El Salvador's National Sovereignty|website=NACLA|access-date=3 January 2018|archive-date=4 January 2018|archive-url=https://web.archive.org/web/20180104192358/https://nacla.org/blog/2012/6/8/pacific-rim-ruling-threatens-el-salvador%25E2%2580%2599s-national-sovereignty|url-status=live}}</ref>

As with other former colonies, El Salvador was considered a mono-export economy (an economy that depended heavily on one type of export) for many years. During colonial times, El Salvador was a thriving exporter of [[Indigo dye|indigo]], but after the invention of synthetic dyes in the 19th century, the newly created modern state turned to [[coffee]] as the main export.

[[File:San Miguel El Salvador.png|thumb|[[San Miguel, El Salvador|San Miguel]] is an important economic centre of El Salvador and home to the "Carnival of San Miguel", one of the biggest festivals of entertainment and food in Central America.<ref name="Herrera-Sobek2012">{{cite book|first=Maria|last=Herrera-Sobek|title=Celebrating Latino Folklore|url=https://books.google.com/books?id=lY-tY62V1FIC&pg=PA459|date=31 July 2012|publisher=ABC-CLIO|isbn=978-0-313-34340-7|page=459|access-date=6 November 2015|archive-date=10 January 2024|archive-url=https://web.archive.org/web/20240110143656/https://books.google.com/books?id=lY-tY62V1FIC&pg=PA459|url-status=live}}</ref>]]
The government has sought to improve the collection of its current revenues, with a focus on indirect taxes. A 10% [[value-added tax]] (IVA in Spanish), implemented in September 1992, was raised to 13% in July 1995. Inflation has been steady and among the lowest in the region. As a result of the free trade agreements, from 2000 to 2006, total exports have grown 19% from $2.94&nbsp;billion to $3.51&nbsp;billion, and total imports have risen 54% from $4.95&nbsp;billion to $7.63&nbsp;billion. This has resulted in a 102% increase in the trade deficit, from $2.01&nbsp;billion to $4.12&nbsp;billion.<ref>{{cite web|title=Trade Balance, Annual and Monthly Accumulated|publisher=Banco Central de Reserva de El Salvador|url=http://www.bcr.gob.sv/ingles/estadisticas/se_balanzacom.html |access-date=17 November 2007|archive-url=https://web.archive.org/web/20071014112428/http://bcr.gob.sv/ingles/estadisticas/se_balanzacom.html|archive-date=14 October 2007}}</ref>

In 2006, El Salvador was the first country to ratify the Central America-Dominican Republic Free Trade Agreement ([[Dominican Republic–Central America Free Trade Agreement|CAFTA]]) — negotiated by the five countries of Central America and the [[Dominican Republic]] — with the United States. CAFTA requires that the Salvadoran government adopt policies that foster [[free trade]]. CAFTA has bolstered exports of processed foods, sugar, and ethanol, and supported investment in the apparel sector, which faced Asian competition with the expiration of the [[Multi Fibre Arrangement]] in 2005. In anticipation of the declines in the apparel sector's competitiveness, the previous administration sought to diversify the economy by promoting the country as a regional distribution and logistics hub, and by promoting tourism investment through tax incentives.

In June 2021, President [[Nayib Bukele]] said he would introduce legislation to make [[Bitcoin]] [[legal tender]] in El Salvador.<ref name=cnbc20210605>{{cite news |title=El Salvador looks to become the world's first country to adopt bitcoin as legal tender |url=https://www.msn.com/en-us/money/markets/el-salvador-hopes-to-becomes-the-world-s-first-country-to-adopt-bitcoin-as-legal-tender/ar-AAKK3CW |work=CNBC |date=5 June 2021 |access-date=5 June 2021 |archive-date=5 June 2021 |archive-url=https://web.archive.org/web/20210605215745/https://www.msn.com/en-us/money/markets/el-salvador-hopes-to-becomes-the-world-s-first-country-to-adopt-bitcoin-as-legal-tender/ar-AAKK3CW |url-status=live }}</ref> The [[Bitcoin Law]] was passed by the [[Legislative Assembly of El Salvador]] on 9 June 2021. Bitcoin officially became a legal tender on 7 September 2021.<ref>{{cite web|url=https://www.wsj.com/articles/bitcoin-comes-to-el-salvador-first-country-to-adopt-crypto-as-national-currency-11631005200|title=El Salvador Becomes First Country to Adopt Bitcoin as National Currency|website=[[The Wall Street Journal]]|last=Pérez|first=Santiago|date=7 September 2021|access-date=7 September 2021|archive-date=7 September 2021|archive-url=https://web.archive.org/web/20210907233833/https://www.wsj.com/articles/bitcoin-comes-to-el-salvador-first-country-to-adopt-crypto-as-national-currency-11631005200|url-status=live}}{{subscription required}}</ref><ref>{{cite web |url=https://www.bbc.com/news/world-latin-america-57398274 |title=Bitcoin: El Salvador makes cryptocurrency legal tender |date=9 June 2021 |website=BBC |publisher= |access-date=9 June 2021 |quote= |archive-date=23 June 2021 |archive-url=https://web.archive.org/web/20210623180912/https://www.bbc.com/news/world-latin-america-57398274 |url-status=live }}</ref><ref name=ft>{{cite web |url=https://www.ft.com/content/7b5b1cc4-50bb-437f-aa16-f106d2dbc1c7 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/7b5b1cc4-50bb-437f-aa16-f106d2dbc1c7 |archive-date=10 December 2022 |url-access=subscription |url-status=live |title=El Salvador becomes first country to adopt bitcoin as legal tender |last1=Webber |first1=Jude |last2=Szalay |first2=Eva |date=9 June 2021 |website= |publisher=Financial Times |access-date=9 June 2021 |quote=}}</ref> As part of the law, foreigners can gain permanent residence in El Salvador if they invest 3 Bitcoin into the country.<ref>{{Cite web|url=https://www.youtube.com/watch?v=qdx_alPrmVY| archive-url=https://ghostarchive.org/varchive/youtube/20211027/qdx_alPrmVY| archive-date=27 October 2021|title=Why El Salvador Made Bitcoin Legal Tender with President Nayib Bukele| date=23 June 2021|via=YouTube}}{{cbignore}}</ref> The implementation of the law has been met with protests,<ref>{{cite web|url=https://www.bbc.co.uk/news/business-58459098|title=Bitcoin crashes on first day as El Salvador's legal tender|last=Silver|first=Katie|website=BBC|date=8 September 2021|access-date=8 September 2021|archive-date=8 September 2021|archive-url=https://web.archive.org/web/20210908115325/https://www.bbc.co.uk/news/business-58459098|url-status=live}}</ref> with the majority of the country being against using Bitcoin as legal tender.<ref>{{cite web|url=https://www.bbc.co.uk/news/technology-58473260|quote=More than 68% of those questioned said they disagreed with using cryptocurrency as a legal tender.|website=BBC|first=Joe|last=Tidy|date=7 September 2021|title=Fear and excitement in El Salvador as Bitcoin becomes legal tender|access-date=8 September 2021|archive-date=26 September 2023|archive-url=https://web.archive.org/web/20230926081220/https://www.bbc.co.uk/news/technology-58473260|url-status=live}}</ref> According to a survey conducted by the Salvadoran Chamber of Commerce, as of March 2022 only 14% of merchants in the country processed at least one Bitcoin transaction.<ref name="Linea 2022">{{cite web | author=Michael McDonald | title=Pocas empresas en El Salvador usan el bitcoin, revela encuesta | website=Bloomberg Linea | date=19 March 2022 | url=https://www.bloomberglinea.com/2022/03/19/pocas-empresas-en-el-salvador-usan-el-bitcoin-revela-encuesta/ | language=es | access-date=19 March 2022 | archive-date=25 March 2022 | archive-url=https://web.archive.org/web/20220325033808/https://www.bloomberglinea.com/2022/03/19/pocas-empresas-en-el-salvador-usan-el-bitcoin-revela-encuesta/ | url-status=live }}</ref> Since May 2024, an official government entity named the Bitcoin Office of El Salvador reports that the government holds 5,750 bitcoin (approximately $354 million circa May 2024) -- with nearly 474 bitcoin (approx $29 million circa May 2024) mined since September 2021 using geothermal energy from the Tecapa volcano.<ref>{{Cite web |last=Renteria |first=Nelson |date=May 15, 2024 |title=El Salvador mined nearly 474 bitcoins, adding to state crypto holding, in last three years |url=https://www.reuters.com/world/americas/el-salvador-mined-nearly-474-bitcoins-adding-state-crypto-holding-last-three-2024-05-14/ |access-date=September 24, 2024 |website=Reuters}}</ref>

El Salvador leads the region in [[remittance]]s per capita, with inflows equivalent to nearly all export income; in 2019 2.35 million Salvadorans lived in the U.S.<ref>{{cite web |url-status=dead |title=Hispanic origin groups in the U.S., 2019 |date=9 September 2021 |publisher=Pew Research Center |url=https://www.pewresearch.org/fact-tank/2021/09/09/key-facts-about-u-s-latinos-for-national-hispanic-heritage-month/ft_21-09-01_keyfactslatinos_origin_table_final1/ |archive-url=https://web.archive.org/web/20210913155140/https://www.pewresearch.org/fact-tank/2021/09/09/key-facts-about-u-s-latinos-for-national-hispanic-heritage-month/ft_21-09-01_keyfactslatinos_origin_table_final1/ |archive-date=13 September 2021 }}</ref> and about a third of all households received remittances. Remittances from Salvadorans living in the United States, sent to family members in El Salvador, are a major source of foreign income and offset the trade deficit. Remittances have increased steadily since the early 2000s, growing from $3.32&nbsp;billion, or approximately 16.2% of GDP in 2006,<ref>{{cite web|title=Family Remittances|publisher=Banco Central de Reserva de El Salvador|url=http://www.bcr.gob.sv/ingles/estadisticas/se_remesas.html |access-date=17 November 2007|archive-url=https://web.archive.org/web/20071107112652/http://www.bcr.gob.sv/ingles/estadisticas/se_remesas.html|archive-date=7 November 2007}}</ref> to nearly $6 billion (around 20% of GDP in 2019, one of the highest rates in the world, according to the World Bank.)<ref>{{Cite news |last=Wilson |first=Tom |last2= |first2= |date=2021-06-14 |title=EXCLUSIVE El Salvador bitcoin transfers soar, but still a fraction of dollar remittances |language=en |work=Reuters |url=https://www.reuters.com/business/finance/exclusive-el-salvador-bitcoin-transfers-soar-still-fraction-dollar-remittances-2021-06-14/ |access-date=2023-05-10 |archive-date=13 September 2021 |archive-url=https://web.archive.org/web/20210913155921/https://www.reuters.com/business/finance/exclusive-el-salvador-bitcoin-transfers-soar-still-fraction-dollar-remittances-2021-06-14/ |url-status=live }}</ref>

In December 2024, Nayib Bukele's [[government]] purchased 11 new BTC for over a million dollars, thus strengthening its strategic reserves.<ref>{{Cite web |date=2024-12-19 |title=El Salvador strikes $1.4bn IMF deal after scaling back Bitcoin policies |url=https://www.bbc.co.uk/news/articles/c20e3l3xllwo |access-date=2024-12-24 |website=BBC News |language=en-GB}}</ref>

===Energy===

El Salvador's [[energy]] industry is diversified across, relying on [[fossil fuel]]s, [[Hydroelectricity|hydro]], other [[Renewable Energy|renewables]] (mainly [[Geothermal Energy|geothermal]]) for local electricity production, along with a reliance on imports for [[Petroleum|oil]]. El Salvador has an installed capacity of 1,983 [[Watt#Megawatt|MW]] generating 5,830 [[Watt#Gigawatt|GWh]] of [[electricity]] per year, 84% of this comes from renewable sources including 26.85% from geothermal (produced from the country's many [[Geography of El Salvador#Physical features|volcanoes]]), 29.92% from hydro and the rest is from fossil fuels.<ref>{{cite web |last1=Barrera |first1=Jose A |title=El Salvador está generando 84.3% de su energía de fuentes renovables |url=https://diario.elmundo.sv/el-salvador-esta-generando-84-3-de-su-energia-de-fuentes-renovables/ |website=diario.elmundo.sv |date=16 August 2021 |publisher=Diario el mundo |access-date=16 September 2021 |archive-date=22 August 2021 |archive-url=https://web.archive.org/web/20210822053024/https://diario.elmundo.sv/el-salvador-esta-generando-84-3-de-su-energia-de-fuentes-renovables/ |url-status=live }}</ref><ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/el-salvador/#energy|title=El Salvador - The World Factbook|website=www.cia.gov|date=July 2022|access-date=1 July 2021|archive-date=21 March 2022|archive-url=https://web.archive.org/web/20220321170220/https://www.cia.gov/the-world-factbook/countries/el-salvador#energy|url-status=live}}</ref>

According to the National Energy Commission, 94.4% of total injections during January 2021 came from hydroelectric plants (28.5% - 124.43 GWh), geothermal (27.3% - 119.07 GWh), biomass (24.4% 106.43 GWh), photovoltaic solar (10.6% - 46.44 GWh) and wind (3.6% - 15.67 GWh).<ref>{{cite web |last1=Singh |first1=Nanda |title=Las energías renovables crecen mientras las tarifas eléctricas disminuyen en El Salvador |url=https://www.energiaestrategica.com/las-energias-renovables-crecen-mientras-las-tarifas-electricas-disminuyen-en-el-salvador/ |website=energiaestrategica.com |date=10 February 2021 |publisher=energía estrategica |access-date=16 September 2021 |archive-date=16 September 2021 |archive-url=https://web.archive.org/web/20210916005634/https://www.energiaestrategica.com/las-energias-renovables-crecen-mientras-las-tarifas-electricas-disminuyen-en-el-salvador/ |url-status=live }}</ref><ref>{{cite web |title=Energías renovables mantuvieron más del 80 % de generación en 2020 en el El Salvador y la eólica inicia su participación en el mercado |url=https://www.bnamericas.com/es/noticias/energias-renovables-mantuvieron-mas-del-80--de-generacion-en-2020-en-el-el-salvador-y-la-eolica-inicia-su-participacion-en-el-mercado |website=www.bnamericas.com |publisher=Bnamericas |access-date=16 September 2021 |archive-date=16 September 2021 |archive-url=https://web.archive.org/web/20210916221332/https://www.bnamericas.com/es/noticias/energias-renovables-mantuvieron-mas-del-80--de-generacion-en-2020-en-el-el-salvador-y-la-eolica-inicia-su-participacion-en-el-mercado |url-status=live }}</ref>

===Telecommunications and media===
{{main|Telecommunications in El Salvador}}
El Salvador has 900,000 fixed telephone lines, 500,000 fixed broadband lines and 9.4 million mobile cellular subscriptions.<ref name="cia.gov">{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/el-salvador/#communications|title=El Salvador - The World Factbook|website=www.cia.gov|date=July 2022|access-date=2 July 2021|archive-date=21 March 2022|archive-url=https://web.archive.org/web/20220321170220/https://www.cia.gov/the-world-factbook/countries/el-salvador#communications|url-status=live}}</ref> Much of the population is able to access the [[internet]] through their smartphones and mobile networks, which liberal government regulation promotes mobile penetration over fixed line including the deployment of [[5G]] coverage (which testing of began in 2020).<ref name="cia.gov"/> Transition to digital transmission of TV/radio networks was done in 2018 with the adaptation of the [[ISDB-T International|ISDB-T]] standard. There are hundreds of privately owned national TV networks, cable TV networks (that also carry international channels), and radio stations available; while there is also 1 government owned broadcast station.<ref name="cia.gov"/>

===Official corruption and foreign investment===
{{further|Corruption in El Salvador}}
In an analysis of ARENA's electoral defeat in 2009, the U.S. Embassy in San Salvador pointed to [[Corruption in El Salvador|official corruption]] under the Saca administration as a significant reason for public rejection of continued ARENA government.{{citation needed|date=July 2023}} Subsequent policies under Funes administrations improved El Salvador to foreign investment, and the World Bank in 2014 rated El Salvador 109, a little better than Belize (118) and Nicaragua (119) in the World Bank's annual "[[Ease of doing business index|Ease of doing business]]" index.<ref>{{cite web|url=http://www.doingbusiness.org/rankings |title=Economy Rankings |access-date=1 October 2014 |archive-url=https://web.archive.org/web/20150206025936/http://www.doingbusiness.org/rankings |archive-date=6 February 2015 }} Annual index, Doing Business 2014, World Bank.</ref>

As per Santander Trade, a Spanish think tank in foreign investment, "Foreign investment into El Salvador has been steadily growing during the last few years. In 2013, the influx of FDI increased. Nevertheless, El Salvador receives less FDI than other countries of Central America. The government has made little progress in terms of improving the business climate. In addition to this, the limited size of its domestic market, weak infrastructures and institutions, as well as the high level of criminality have been real obstacles to investors. However, El Salvador is the second most 'business friendly' country in Central America in terms of business taxation. It also has a young and skilled labour force and a strategic geographical position. The country's membership in the DR-CAFTA, as well as its reinforced integration to the C4 countries (producers of cotton) should lead to an increase of FDI".<ref>{{cite web|url=https://en.santandertrade.com/establish-overseas/el-salvador/investing-3|title=Foreign investment in El Salvador - Santandertrade.com|website=en.santandertrade.com|access-date=13 April 2015|archive-date=14 April 2015|archive-url=https://web.archive.org/web/20150414013243/https://en.santandertrade.com/establish-overseas/el-salvador/investing-3}}</ref>

Foreign companies have lately resorted to arbitration in international trade tribunals in total disagreement with Salvadoran government policies. In 2008, El Salvador sought international arbitration against Italy's Enel Green Power, on behalf of Salvadoran state-owned electric companies for a geothermal project Enel had invested in. Four years later, Enel indicated it would seek arbitration against El Salvador, blaming the government for technical problems that prevent it from completing its investment.<ref>{{cite news |title=CEL a punto de ir a otro arbitraje |url=http://www.elsalvador.com/mwedh/nota/nota_completa.asp?idCat=47861&idArt=6919711 |access-date=17 March 2020 |work=elsalvador.com |date=21 May 2012 |archive-url=https://web.archive.org/web/20141129045947/http://www.elsalvador.com/mwedh/nota/nota_completa.asp?idCat=47861&idArt=6919711 |archive-date=29 November 2014}}</ref> The government came to its defence claiming that Art 109 of the constitution does not allow any government (regardless of the party they belong), to privatize the resources of the national soil (in this case geothermic energy). The dispute came to an end in December 2014 when both parties came to a settlement, from which no details have been released. The small country had yielded to pressure from the Washington-based powerful [[International Centre for Settlement of Investment Disputes|ICSID]].<ref>{{cite news |title=El Salvador y Enel ponen fin a litigio por acciones de la CEL |url=http://www.lapagina.com.sv/nacionales/101837/2014/12/07/El-Salvador-y-Enel-ponen-fin-a-litigio-por-acciones-de-La-Geo |access-date=17 March 2020 |work=La Página |date=7 December 2014 |archive-url=https://web.archive.org/web/20161107110631/http://www.lapagina.com.sv/nacionales/101837/2014/12/07/El-Salvador-y-Enel-ponen-fin-a-litigio-por-acciones-de-La-Geo |archive-date=7 November 2016}}</ref> The U.S. Embassy warned in 2009 that the Salvadoran government's populist policies of mandating artificially low electricity prices were damaging private sector profitability, including the interests of American investors in the energy sector.{{citation needed|date=July 2023}} The U.S. Embassy noted the corruption of El Salvador's judicial system and quietly urged American businesses to include "arbitration clauses, preferably with a foreign venue", when doing business in the country.{{citation needed|date=July 2023}}

In terms of how people perceived the levels of public corruption in 2014, El Salvador ranks 80 out of 175 countries as per the [[Corruption Perceptions Index]].<ref>{{cite web|url=http://www.transparency.org/cpi2014/results,|title=How corrupt is your country?|first=Transparency International|last=e.V.|website=transparency.org|access-date=13 April 2015|archive-date=16 June 2016|archive-url=https://web.archive.org/web/20160616202240/http://www.transparency.org/cpi2014/results,}}</ref> El Salvador's rating compares relatively well with Panama (94 of 175) and Costa Rica (47 of 175).

===Tourism===
{{Further|Tourism in El Salvador}}
[[File:Palms El Salvador.JPG|thumb|Tropical beach at La Libertad]]

It was estimated that 1,394,000 international tourists visited El Salvador in 2014. Tourism contributed US$2970.1&nbsp;million to El Salvador's GDP in 2019. This represented 11% of total GDP.<ref name="wttc.org">{{cite web |url=https://wttc.org/Research/Economic-Impact |title=Economic Impact Reports |website=wttc.org |access-date=13 December 2020 |archive-date=10 December 2020 |archive-url=https://web.archive.org/web/20201210140834/https://wttc.org/Research/Economic-Impact |url-status=live }}</ref> Tourism directly supported 80,500 jobs in 2013. This represented 3.1% of total employment in El Salvador. In 2019, tourism indirectly supported 317,200 jobs, representing 11.6% of total employment in El Salvador.<ref name="wttc.org" />

Most North American and European tourists seek out El Salvador's beaches and nightlife. El Salvador's tourism landscape is slightly different from those of other Central American countries. Because of its geographic size and urbanization there are not many nature-themed tourist destinations such as ecotours or archaeological sites open to the public. Nonetheless, El Salvador remains best known for its beaches and volcanoes. The most frequently visited beaches include El Tunco, Punta Roca, El Sunzal, El Zonte beach, La Costa del Sol, El Majahual, and La Libertad beach. The most hiked volcanoes are Santa Ana and Izalco.<ref>{{cite web |last1=Luna |first1=Mar |title=10 Volcanoes to Hike in El Salvador |url=https://www.spanish.academy/blog/10-volcanoes-to-hike-in-el-salvador/ |website=Homeschool Spanish Academy |date=13 November 2021 |access-date=6 March 2023 |archive-date=6 March 2023 |archive-url=https://web.archive.org/web/20230306215120/https://www.spanish.academy/blog/10-volcanoes-to-hike-in-el-salvador/ |url-status=live }}</ref><ref>{{cite web |title=12 Places to visit in El Salvador. Get to know them today. |url=https://elsalvadorinfo.net/places-to-visit-in-el-salvador/ |website=El Salvador Info |date=23 January 2021 |access-date=6 March 2023 |archive-date=6 March 2023 |archive-url=https://web.archive.org/web/20230306215122/https://elsalvadorinfo.net/places-to-visit-in-el-salvador/ |url-status=live }}</ref><ref>{{cite web|url=http://www.elsalvador.com/mwedh/nota/nota_varias_fotos.asp?idCat=2907&idArt=1482342 |archive-url=https://web.archive.org/web/20080223005240/http://www.elsalvador.com/mwedh/nota/nota_varias_fotos.asp?idCat=2907&idArt=1482342 |archive-date=23 February 2008 |title=Los 10 destinos turísticos más apetecidos |first=Milady |last=Cruz |date=24 June 2007|publisher=elsalvador.com |access-date=2 May 2010}}</ref>