El Salvador, officially the
Republic of El Salvador (Spanish:
República de El Salvador, literally "Republic of The Savior";
Pipil:
Kūskatan), is the smallest and the most densely populated country in Central America. The country's capital city and largest city is
San Salvador, with other important cities including
Santa Ana and
San Miguel. El Salvador borders the Pacific Ocean on the south, and the countries of
Guatemala to the west and
Honduras to the north and east. Its easternmost region lies on the coast of the
Gulf of Fonseca, opposite
Nicaragua. As of 2013, El Salvador had a population of approximately 6.29 million making it the most densely populated country in the region composed predominantly by
Mestizos of European and Indigenous American descent.
From the late 19th to mid 20th century, El Salvador endured chronic political and economic instability characterized by coups, revolts, and a succession of authoritarian rulers. Persistent socioeconomic inequality and civil unrest culminated in the devastating
Salvadoran Civil War (1979–1992), which was fought between the military-led government and a coalition of left-wing guerrilla groups. The conflict ended with a
negotiated settlement that established a multiparty constitutional republic, which remains in place to this day.
El Salvador's economy was historically dominated by agriculture, beginning with the
indigo plant (
añil in Spanish), the most important crop during the colonial period, and followed thereafter by coffee, which by the early 20th century accounted for 90 percent of export earnings. El Salvador has since reduced its dependence on coffee and embarked on diversifying the economy by opening up trade and financial links and expanding the manufacturing sector. The
colón, the official currency of El Salvador since 1892, was replaced by the
U.S. dollar in 2001.
As of 2010, El Salvador ranks 12th among Latin American countries in terms of the Human Development Index and fourth in Central America (behind Panama, Costa Rica, and Belize) due in part to ongoing rapid industrialisation, however the country continues to struggle with high rates of poverty, inequality, and crime.