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Industry in El Salvador has a slow but steady growth rate. El Salvador has suffered a lot of turmoil including war and natural disasters, which has rendered the economic growth of the country largely unstable. The civil war in El Salvador had a distressing effect on its agriculture, making the country's economy mostly dependent on the industrial sector. The creation of the new export industries along with fiscal incentives for free trade zones, made El Salvador's economy soar towards a positive development.
History of El Salvador Industry
Industry in El Salvador developed during the 1960s. The formation of the CACM promoted the growth of industries in El Salvador, as it lessened intraregional trade blockades and amplified the cumulative demand for manufactured goods. The manufacturing sectors of El Salvador profited from this development. Manufacturing of consumer goods prevailed in the industrial sector of the country at this point. Transitional goods like chemicals and pharmaceuticals had become more imperative during the 1970s. But they nevertheless comprised of only about 15 % of the manufacturing productivity of El Salvador Industry in 1986.
Nature of Industry in El Salvador
Industry in El Salvador consists of food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, and light metal industries. El Salvador also has some small industries that generate tobacco products, petroleum products, clothing, textiles, wood products, and paper products. Construction industry is the second most important donor to the industrial sector of the country. However, its input to the GDP is noticeably lesser than that of the manufacturing industry in El Salvador.
Growth of Industry in El Salvador
The development of the El Salvador Industry involves biggest contributions from the textile and apparel sector of the manufacturing industry. This industry currently offers 70,000 employment opportunities. The Service Industry in El Salvador, which includes retail and financial services, has revealed strong escalation in employment as well. Approximately 49.8% of the total human resource of the country is working in this sector at this time. Call centers have shown notable growth within this particular sector as well, with 4,000 employed at present.
Industry in El Salvador is struggling to accomplish growth and expansion despite several obstacles such as political instability and underemployment. However, it seems that it has achieved a notable development in a very short period of time.
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