Back to main site

Integrated SDG Insights

El Salvador

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

El Salvador’s economy is in coping mode in 2023, and it is expected to transition into mitigation mode by 2024-2025. This pace of growth is characterized by being 27% lower, on average, than the global figure, and aligned to the country’s growth trajectory forecast before the pandemic, which was already historically low and insufficient to generate the necessary jobs. From a long-term perspective spanning the last three decades, the influx of individuals into the labour market has consistently outstripped the creation of formal livelihoods by an average ratio of 4 to 1.

Read More

This pace of growth would exert only a moderate positive impact on reducing poverty, and there are still challenges to accelerate progress, especially when using more stringent thresholds, considering that El Salvador’s commitments to achieving the SDGs are focused on increasing people’s well-being, as 5 out of the 10 prioritized SDGs align with the "people" pillar. Moreover, the country’s economic expansion is not expected to be less dependent on carbon emissions as the country’s fossil emissions intensity of GDP is projected to remain unchanged — and increase at an annual rate of 0.4% when also considering land-use change.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have access to basic services

The VNR 2022 identified a positive trend in the evolution of this goal. However, it is recognized that there is a need to make further progress for closing gaps in territorial inequalities, particularly in terms of access to basic water services and improved sanitation between urban and rural areas. The most recent national data allows us to establish that rural exclusion, when compared to urban areas, was more than triple in terms of access to domestic drinking water and more than double in terms of improved sanitation services.

The lack of access to drinking water and sanitation has been a key vulnerability condition used to identify populations that are being left behind. Access to drinking water has particularly affected young people, including boys, girls and adolescents. People in conditions of monetary poverty and those  engaged in agriculture, livestock, hunting and forestry have faced challenges in accessing sanitation services.

2.1: End hunger by 2030. This means eliminating undernourishment for all.

Up until 2020, El Salvador had successfully reduced the percentage of its population experiencing food insecurity. However, the COVID-19 pandemic, disruptions in supply chains and the conflict between Russia and Ukraine have resulted in a series of shocks that are impacting the prices of essential food products. These shocks have exacerbated the conditions of food insecurity, especially given the country's heavy reliance on food imports.

Additionally, malnutrition could be further exacerbated by the occurrence of El Niño and subsequent droughts, which might align with critical planting and harvesting periods for essential crops. Data from the National Food Security Survey at the end of 2022 had already highlighted concerning levels of meagre reserves for staple grains. Furthermore, the survey revealed that 12.9% of the population, amounting to 806,117 individuals, were grappling with either food security challenges or severe food insecurity conditions.

2.2: By 2030 “end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on stunting and wasting in children under 5 years of age.”

El Salvador must address the unfavourable trend in eradicating various forms of malnutrition right from the early stages of life, particularly focusing on the prevalence of malnutrition linked to both overweight and low weight-for-height among children under the age of five. Between 2015 and 2021, the incidence of malnutrition related to overweight in this age group increased from 6.4% to 8.3%, while malnutrition due to underweight rose from 2.1% to 2.9%. Malnutrition stemming from overweight is slightly more prominent among girls and in urban areas, whereas malnutrition linked to underweight is more prevalent among boys and in rural areas.

Furthermore, food insecurity poses a significant challenge to the strategy of leaving no one behind, particularly affecting those living in monetary poverty and engaged in activities such as agriculture, livestock, hunting and forestry.

5.4: By 2030 recognize and value unpaid care and domestic work, and promote shared responsibility within the household and family.

In the realm of women's economic autonomy, El Salvador must confront the challenge of diminishing the impact of the unpaid domestic-reproductive burden, which acts as a hindrance to women's economic participation and their ability to access adequate income throughout their lives.

The most recent data available from time use surveys dates to 2017, prior to the onset of the COVID-19 pandemic. It reveals that, on average, women dedicated a minimum of five hours daily to unpaid domestic-reproductive tasks, whereas men allocated less than 2.5 hours daily for the same. However, this situation may have worsened during the pandemic as the crisis escalated caregiving responsibilities, disproportionately impacting women due to heightened care demands within households.

These same statistics indicate that discrepancies in daily hours allocated to domestic-reproductive labour commence in childhood (ages 10 to 14), intensify during early productive years (ages 15 to 24), increase further during prime productive years (ages 25 to 64) and endure into old age. Tackling this burden requires a shift toward social arrangements that foster greater co-responsibility.

6.4: By 2030 “substantially increase water-use efficiency across all sectors.”

In comparison to other regions, El Salvador continues to face substantial challenges in the efficient utilization of water resources. This is evident from the indicator that tracks the added value in US dollars per volume of water used in cubic metres for a specific economic activity over time, which reports values below US$10 per cubic metre.

At the national indicator level, a significant concern is the increase in the "percentage of unaccounted for water." This percentage has risen from 49.10% in 2015 to 65.30% in 2021, highlighting the need for attention and action in water resource management.

8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

Even prior to the COVID-19 pandemic, numerous economic analyses and diagnoses consistently underscored the necessity of enhancing economic growth rates to foster wealth, job opportunities and capacity- building.

Over the course of three decades, spanning 1990 to 2019, GDP grew at an average rate of 2.6%. The most robust average was recorded between 1990 and 1999 standing at 3.7%. During 2000-2009, the average annual growth rate decreased to 1.5% due to the impact of the dollarization in 2001 and the implementation of restrictive macroeconomic policies. Subsequently, from 2010 to 2019, growth demonstrated a slight improvement, attaining an average of 2.5%.

The pandemic had a substantial impact on economic growth, and for 2020 the GDP growth rate contracted by -8.2% in comparison to the preceding year. However, in 2021, economic growth rebounded, with a notable expansion of 10.3%. Nonetheless, by 2022, the growth rate reverted to its historical average, registering at 2.8%. Projections indicate that, by the conclusion of 2023, growth is anticipated to reach 2.3%.

8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

In El Salvador, the labour market exhibits distinct characteristics, including a notable lack of female participation, elevated levels of underemployment and informality and relatively low wages. Data predating the pandemic highlights several key points:

  1. Approximately 62.2% of the working-age population are actively engaged in the labour market (comprising 80.5% of men and 46.8% of women).
  2. Within the active population, around 6.3% were unemployed (consisting of 7.0% of men and 5.4% of women).
  3. A substantial 37.4% of those employed experienced underemployment (with 34.8% being men and 40.5% women).
  4. A significant 55.9% of the employed individuals operated within the informal sector (split between 57.6% men and 52.7% women).
  5. Notably, 57.3% of full-time salaried workers earned wages equal to or below the minimum wage (comprising 51.5% men and 64.9% women).
  6. A mere 2 out of 10 employed individuals held decent jobs, illustrating the challenge of securing quality employment opportunities.

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

El Salvador's gross government debt, projected at 76.1% of GDP in 2023, is 7.3 percentage points above the emerging market and middle-income economies (EMMIE) group of 68.8%. The country is expected to collect 25% of GDP in revenue this year, which is close to the EMMIE group’s 26%.

Show More

El Salvador's external debt servicing relative to revenue is expected to be as high as 31.2% this year, which is more than 2.5 times the EMMIE average of 12.3%. The country’s credit rating is in ‘default’ territory and thus significantly below the EMMIE average. To achieve SDG targets, El Salvador must expedite an increase in public and private investment. This will necessitate additional income to cover current state financing, but also to fund strategic initiatives for the fulfilment of the sustainable development objectives.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

El Salvador

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform
  • Debt for SDGs
  • Climate finance
  • Blended and public-private finance
  • SDG-aligned business environment and investment
  • Accessing financial markets and insurance
  • Remittances, philanthropy and faith-based financing

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).