El Salvador achieved independence from Spain in 1821 and from the Central American Federation in 1839. A 12-year civil war, which cost about 75,000 lives, was brought to a close in 1992 when the government and leftist rebels signed a treaty that provided for military and political reforms.

The smallest country in Central America, El Salvador has the third largest economy, but growth has been minimal in recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation in 2006 of the Central America-Dominican Republic Free Trade Agreement, which El Salvador was the first to ratify, has strengthened an already positive export trend. The trade deficit has been offset by annual remittances from Salvadorans living abroad - equivalent to more than 16% of GDP - and external aid. With the adoption of the US dollar as its currency in 2001, El Salvador has lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy. The current government has pursued economic diversification, with some success in promoting textile production, international port services, and tourism. It is committed to opening the economy to trade and investment, and has embarked on a wave of privatization extending to telecom, electricity distribution, banking, and pension funds.

At 21,040 sq km. it is slightly smaller than Massachusetts. The population is 6,948,073 (July 2007 est)

The Government is a republic , the Capitol is San Salvador and there are 14 departments: Ahuachapan, Cabanas, Chalatenango, Cuscatlan, La Libertad, La Paz, La Union, Morazan, San Miguel, San Salvador, San Vicente, Santa Ana, Sonsonate and Usulutan.

GDP: agriculture: 9.7%
industry: 29.6%
services: 60.7% (2006 est.)

El Salvador