Formerly a Spanish colony, it became independent in 1841. A bloody civil war which broke out in 1979 was brought to an end by the peace agreements of 16 January 1992 between the government and the rebels of the Farabundo Marti National Liberation Front (FMLN).
According to the Constitution of 15 December 1983, amended several times, the President of the Republic is elected by direct suffrage for a five-year term. Legislative power lies in the hands of the National Assembly (84 members), elected by direct suffrage for three years.

Primary sector.
More than 90% of farmsteads are micro-farms which occupy about one-fifth of the total land area. The main export crops are coffee (departments of Usulután, San Miguel, San Salvador and San Vicente) and sugar-cane (departments of San Salvador, Sonsonate and San Vicente). The main products grown to feed the local population are maize, sorghum and dried beans. Cattle are reared on large farms on the coastal plain. The forests are a source of prized timber.

Secondary and tertiary sector.
El Salvador is poor in mineral resources (gold and silver in Montecristo), and in 2017, a law was introduced prohibiting mining activity. Economic growth is sustained by exports (food products and clothing).
The main industries include sugar refineries, cigar factories, paper mills, cement factories (Metapán), electronic components and fertilizer plants. There are call center services on behalf of US companies.
With regard to the balance of payments, remittances from migrant workers are essential to the economy. Since 2001, the US dollar has replaced the Colón as the country’s legal currency and in 2021 it was joined by Bitcoin.