The recession was caused by less international demand and lower domestic consumption.
Government authorities and the International Monetary Fund added they expect the economy to grow 1% in 2010.
"Among other macroeconomic variables, remittances dropped 8.6% in 2009, which translates to $321.7 million less than in 2008. Credit to the private sector fell -5.7%, according to preliminary figures", reported Elsalvador.com.
One year after the fall of Lehman Brothers, SECMCA analyzes the international situation, and Central America's perspectives and current situation.
Production continues to fall, as evidenced by the Central American Monthly Economic Activity Index, confirming a process started on the last trimester of 2008. June's variation was -1.9% when compared to the same month of the previous year.
This special report by Fitch examines the credit risk dynamics of El Salvador as it coincides with the end of a political cycle in the country.
Financial pressures and external liquidity, exacerbated by political uncertainty during a pre-electoral period, led Fitch to modify the Prespectives of the IDRs of sovereign risk in the long-term regarding foreign and local currency in October 2008.
Inflation is declining and economic growth is decelerating - Analysis of the Executive Secretary of the Central American Monetary Counsel.
The excessive volatility in the financial markets and the low investor and consumer confidence levels are omens that the crisis is going to last, which is being translated into lower levels of consumption and investment and high unemployment rates in the most developed countries.
The financial crisis will affect all Latin American countries, despite the fact that they are better position than in the past to withstand it, said Juan Jose Daboub, general director of the World Bank.
Daboub, ex minister of Economy for El Salvador, will be in Panama next week and in his country of origin, where he will participate in the Ibero-American Summit.