Analysis of the trade balance deficit an its possible implications for the salvadoran economy

Abstract

The trade deficit constitutes an urgent concern for the economies of many countries, as elevated levels can lead to severe issues such as capital flight. Most nations face recurring challenges in this area of the external sector, where imports exceed exports in their trade relations. For this reason, it is essential to carry out descriptive research aimed at identifying and emphasizing the importance of this issue within the external sector. El Salvador is no exception in this regard; along with Honduras and Nicaragua, it ranks among the countries with the largest negative trade balances in the region. However, not all prospects are unfavorable. There are opportunities that should be seized to gradually address this situation. These include boosting domestic production, making better use of trade agreements, and promoting the export of services—such as tourism—among others.