From The Rio Times · Contributing Reporter · · 2m
El Salvador and Neighbors
El Salvador's borders, trade, and migration with Central America.
In brief
El Salvador's borders, trade, and migration with Central America. El Salvador, with 6.3 million people and a $36.7 billion economy, trades with Guatemala, Honduras, and Nicaragua while sending $9.99 billion in remittances. Originally reported by The Rio Times.
El Salvador's Size
El Salvador covers 21,040 square kilometres, the smallest area of any mainland country in Central America.
Population and Economy
It had 6,365,503 people in 2025, against 18,687,881 in Guatemala, 11,005,850 in Honduras and 7,007,502 in Nicaragua. Its economy was worth US$36.7 billion that year.
Dollar Economy
El Salvador has used the US dollar as legal tender since 1 January 2001, the central bank says.
Guatemala Border
Guatemala is El Salvador's biggest neighbor, meeting at La Hachadura where the Paz River separates them.
New Bridge
President Nayib Bukele inaugurated the General Manuel José Arce bridge over the Paz River on Wednesday 14 October 2026.
Honduras Border
Honduras and El Salvador have a history of open dispute, including a short war from 14 July to 18 July 1969.
Gulf of Fonseca
El Salvador has no land border with Nicaragua, but shares the Gulf of Fonseca with Honduras and Nicaragua.
Trade with Neighbors
Guatemala bought US$1.26 billion of Salvadoran goods in 2025, up 2.5% on 2024, and Honduras US$1.08 billion.
Remittances
Family remittances reached US$9.99 billion in 2025, up about 18% on 2024, the highest since 1991.
International Court of Justice
On 11 September 1992 a chamber of the court gave the islands of Meanguera and Meanguerita to El Salvador and El Tigre to Honduras.
Trifinio Region
Three governments manage a shared region called Plan Trifinio, covering 8 Salvadoran districts, 15 Guatemalan municipalities and 22 Honduran municipalities.
Migration Trends
From January to September 2026, 699,002 Hondurans visited El Salvador, up 26.6% on the 552,325 of the same months of 2025.
State Department Advisory
The State Department rated El Salvador at Level 1, exercise normal precautions, on 25 June 2026.
Regional Security
Costa Rica opened a 5,100-place high-security prison, the CACCO, in Alajuela on Wednesday 14 October 2026.
Trade and Remittances
El Salvador exported US$6.43 billion of goods in 2025, up 1.9% on 2024, with the United States buying US$2.09 billion.
What It Means for US Readers
Investors should read El Salvador as a dollar economy tied to US demand and US remittances.
The big picture
El Salvador, with 6.3 million people and a $36.7 billion economy, trades with Guatemala, Honduras, and Nicaragua while sending $9.99 billion in remittances.
