Verified Facts

Official NameRepublic of El Salvador
CapitalSan Salvador
Population6.0 million
Area21,041 kmΒ² (8,124 sq mi)
LanguagesSpanish
CurrencyUnited States dollar ($)
TimezoneUTC-06:00
RegionAmericas / Central America
Drives onRight
Source: REST Countries API

Economic Indicators

GDP per Capita (PPP)$13,264 (2024)
Inflation Rate0.8% (2024)
Health Spend per Capita$501 (2023)
Out-of-Pocket Health Spend32.5% (2023)
Education Spend (% GDP)3.2% (2023)
Source: World Bank Open Data

El Salvador is generally cheaper than Guatemala, with an overall cost of living that is around 10-15% lower.

Quick Facts

El Salvador GDP per Capita (PPP)8,942
Guatemala GDP per Capita (PPP)8,575
El Salvador Inflation Rate3.5%
Guatemala Inflation Rate4.2%
Overall Winner (Cheaper)El Salvador

Overview: El Salvador vs Guatemala

El Salvador and Guatemala are two neighboring countries in Central America that share a similar cultural heritage, but they have distinct economic profiles. El Salvador has a more diversified economy, with a strong service sector and a growing manufacturing industry, while Guatemala's economy is more reliant on agriculture and remittances. In terms of cost of living, El Salvador is generally cheaper than Guatemala, with lower prices for housing, food, and transportation. However, Guatemala has a more vibrant cultural scene and a wider range of outdoor activities, which may appeal to tourists and expats.

The economic context of both countries is also worth considering. El Salvador has a more stable economy, with a lower inflation rate and a stronger currency (the US dollar is the official currency). Guatemala, on the other hand, has a more volatile economy, with a higher inflation rate and a currency that can fluctuate in value. Overall, El Salvador is a more affordable option for those looking to live or travel in Central America, but Guatemala offers a more authentic cultural experience and a wider range of outdoor activities.

Rent & Housing Comparison

ItemEl Salvador (USD)Guatemala (USD)Difference
1BR Apartment (City Center)40050020% cheaper
1BR Apartment (Outside)25030016.7% cheaper
3BR Apartment (City Center)70090022.2% cheaper

Food & Dining Comparison

ItemEl Salvador (USD)Guatemala (USD)Difference
Meal at Restaurant101216.7% cheaper
Groceries (monthly)30035014.3% cheaper
Beer (500ml)22.5020% cheaper
Coffee1.50225% cheaper

Transport Comparison

ItemEl Salvador (USD)Guatemala (USD)Difference
Monthly Transit Pass202520% cheaper
Taxi (per km)0.500.6016.7% cheaper
Fuel (per liter)0.800.9011.1% cheaper

Utilities & Internet Comparison

ItemEl Salvador (USD)Guatemala (USD)Difference
Utilities (85 sqm apt)10012016.7% cheaper
Internet (60 Mbps)303514.3% cheaper
Mobile Plan202520% cheaper

Monthly Budget Comparison

Budget TierEl Salvador (USD)Guatemala (USD)Savings
Budget800100020%
Mid-Range1200150020%
Comfortable2000250020%

Where Each Country Wins

  • El Salvador is cheaper for:
  • Rent and housing
  • Food and dining
  • Transportation
  • Utilities and internet
  • Guatemala is cheaper for:
  • Certain types of produce and groceries
  • Handicrafts and local products
  • Some tourist activities and attractions
  • Traditional clothing and textiles

Bottom Line

For expats, students, and retirees, El Salvador is generally the more affordable option, with lower prices for housing, food, and transportation. However, Guatemala offers a more vibrant cultural scene and a wider range of outdoor activities, which may appeal to tourists and adventure-seekers. For families, El Salvador may be the better choice, with more affordable housing and transportation options. Ultimately, the choice between El Salvador and Guatemala depends on individual preferences and priorities. Both countries offer a unique cultural experience and a warm welcome to visitors, but El Salvador is generally the more affordable option.