Analysis of the trade balance deficit and its possible implications for the Salvadoran economy

Abstract

The trade deficit represents an urgent problem for the economies of numerous countries, as a high level can lead to serious capital flight. Most nations face recurring challenges in this area of ​​the external sector, where imports exceed exports with their trading partners.

Therefore, it is crucial to conduct descriptive research that identifies and highlights the relevance of this issue within the external sector.

El Salvador is no exception in this context, as, along with Honduras and Nicaragua, it is among the countries with the largest negative trade balances in the region. However, the situation is not entirely negative, as there are opportunities that should be seized to gradually address this issue. These include increasing domestic production, making better use of trade agreements, and promoting the export of services, such as tourism, among others.