El Salvador : Staff Report for the 2004 Article IV Consultation

This 2004 Article IV Consultation highlights that economic growth in El Salvador in recent years has been dampened by adverse external conditions, major earthquakes, and election-related uncertainties. Real GDP growth is estimated at about 1½ percent in 2004 while inflation picked up to more than 5 percent, owing to higher oil prices. The public sector deficit is expected to decline to 3 percent of GDP in 2004. Executive Directors have praised El Salvador's long-standing record of structural reform and commitment to sound macroeconomic policies, and considered that official dollarization has served El Salvador well.