El Salvador - Economic situation and prospects (Vol. 1 of 3) : Main report

RESTRICTED Report No. WH- 163a I This report was prepored for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be nublished nor may it be qunted as renresentino their views= INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMIC SITUATION ANT) PROSPGCTS OF EL SALVADOR August 18. 1966 Western Heminsphere Departfent  fUTTD $1 '.7 = evTrTir A 50 (TCTloneC us $1 = Z 2. 50 (Colones)  TABLE OF CONTENTS Paee No. BASIC DATA MAP SUM1MARY AND CONCLUSIONS i - ii I. DITRODUCTION 1 II. ECONONIC GROWTH 2 III. FISCAL DEVELOPMENTS AND PUBLIC INVEST1ENT 13 IV. BALANCE OF PAYMENTS AND CREDITWORTHINESS 22 STATISTICAL APPENDIX This report is based on the findings of a mission in March/April 1966 to El Salvador composed of Mr. Pedro-Pablo Kuczynski of the Bank.  BASIC DATA Area: 8,061 square miles Population (1965): 2.95 million Rate of growth (1961-65): 2.8% p.a* Population density (per sq. mile): 366 Population density. per sq. mile of arable land: 920 Political status: Republic, Member Organization of Central AmErican States \ ,_,* ,,i.rnc:.q ;ounnwat.;n nrnsrIIIIt. {lQigA 9-917 millinn c-nIonnPc Gros domestic produt (195 965): 2,937 p.a in real terms (1965): 6,6o p.a. in real terms Per capita (1965): US$ 276 Sector Origin of GDP: (1965) Agriculture: 29% 1'ning -. Manufacturing: 17% rercentl of DP a' rLrarit'Lt. ;rices 17>u4 -L7-) Gross investment i5 3% 13.5a7 Gross savings nea, n.a. Balance of payments current account deficit (excl. official donations) 3.8% -095% (surplus) Investment income payments 0.9,% O.4% Central Government current revenues 11.9% 13.8% Resource gap as MJ of investment 25.1% -6.7% (surplus) Money and credit (million colones) Relationship to large monetary or Member, Central American Commor customs area: Market, Central American Monetary Union. Rate of Change 1965 1959-1965 Total money supply 290 3.2% p.a. Time and savings deposits 204 20.5% p.a. Commercial bank credit to private sector 417 4.8% Other lending to private sector 15 naa. Rate of change in prices 0.7% 0  Public sector operations (million colones) Rate of Change 1965 1959 - 1965 Central Government current revenues 224 6.1% p.a. Cte ural3. UG 0-%VnLLuIent current expenditur esL- 1879 2 S '-'/ pa Surplus/deficit 35 25.0% p.a.(from l959/60, Central w overnxzient capital exp-endi tures 17 60%J p.a. Total Public investment expenditures 74 11.5% p.a. Total external assistance to publc sector (gross) 40 2 in 1959 External public debt (US$ million) 1961 1965 Total debt outstanding (incl. undisbursed) 26.0 78.7 Total ar,nua( L deut oer-vice -3..) Debt service ration (%0 of exports) 2.9% 4.5%0 Balance of payments (US$ mill-ion) 1965 1958 - 1965 Total exports f.o.b. 188.7 6.9% TPot a"l- --.o-4s coiO 21. 9.2% Net invisibles (other) - 15.1 11.4% of w L h in-estl,,ent incorme - .0) .LO Net current accourt balance (excl. UiLl'.ald.L ULdonatlons) - 20.6e +1o.9 Lin 19',8A PnmmnA, 19,16 nnnnar,-v,., 4- - an +I ? nvnrvn O.