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El Salvador: Recent Economic Developments

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  • International Monetary Fund

Abstract

This paper analyzes economic developments in El Salvador during 1990–97. The paper assesses the prospects of the Salvadoran economy in facing the new challenges coming from its reinsertion into the global economy. The paper describes the evolution of trade competitiveness and evaluates the divergence from equilibrium of the real effective exchange rate. It concludes that the exchange rate behavior in the last decade appears to have followed roughly the path predicted by a long-term equilibrium exchange rate model consistent with a current account deficit of about 2 percent of GDP.

Suggested Citation

  • International Monetary Fund, 1998. "El Salvador: Recent Economic Developments," IMF Staff Country Reports 1998/032, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:1998/032
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    Cited by:

    1. Myriam Quispe-Agnoli & Elena Whisler, 2006. "Official dollarization and the banking system in Ecuador and El Salvador," Economic Review, Federal Reserve Bank of Atlanta, vol. 91(Q 3), pages 55-71.

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