El Salvador achieved independence from Spain in 1821 and from the Central American Federation in 1839. A 12-year civil war, which cost the lives of some 75,000 people, was brought to a close in 1992 when the government and leftist rebels signed a treaty that provided for military and political reforms.
Economy - overview
El Salvador's poor Central American economy suffers from a weak tax collection system, factory closings, the aftermath of Hurricane Mitch, and weak world coffee prices. On the bright side, in recent years inflation has fallen to single digit levels, and total exports have grown substantially. The substantial trade deficit has been offset by remittances from the large number of Salvadorans living abroad and from external aid.
