Weekly Report - 30 September 2003

EL SALVADOR | Resizing the `maquila' sector's contribution. In January- August, El Salvador's trade balance showed a deficit of US$1.7bn, almost a quarter larger than that of the comparable period last year and and a fair amount of that is traceable to the `start' export sector, the maquila or assembly industry. Maquila exports in the first eight months totalled US$1.25bn, 8.6% up on last year and 60% of El Salvador's total exports. However, only about US$339m of that is net; the rest, 73%, flowed straight back out to pay for inputs.