El Salvador (ɔːr/ (listen); Spanish: [el salβaˈðoɾ]), officially the Republic of El Salvador (Spanish: República de El Salvador, literally "Republic of The Savior"), is the smallest and the most densely populated country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is San Salvador. As of 2016, the country had a population of approximately 6.34 million.
From the late 19th to the mid-20th century, El Salvador endured chronic political and economic instability characterized by coups, revolts, and a succession of authoritarian rulers. Persistent socioeconomic inequality and civil unrest culminated in the devastating Salvadoran Civil War (1979–1992), which was fought between the military-led government and a coalition of left-wing guerrilla groups. The conflict ended with the Chapultepec Peace Accords. This negotiated settlement established a multiparty constitutional republic, which remains in place to this day.
El Salvador's economy has historically been dominated by agriculture, beginning with the indigo plant (añil in Spanish), the most important crop during the colonial period, and followed thereafter by coffee, which by the early 20th century accounted for 90 percent of export earnings. El Salvador has since reduced its dependence on coffee and embarked on diversifying the economy by opening up trade and financial links and expanding the manufacturing sector. The colón, the official currency of El Salvador since 1892, was replaced by the U.S. dollar in 2001.
As of 2010, El Salvador ranks 12th among Latin American countries in terms of the Human Development Index and fourth in Central America (behind Panama, Costa Rica, and Belize) due in part to ongoing rapid industrialisation. However, the country continues to struggle with high rates of poverty, inequality, and crime.
Conquistador Pedro de Alvarado named the new province for Jesus Christ – El Salvador ("The Savior"). The full name was "Provincia De Nuestro Señor Jesus Cristo, El Salvador Del Mundo" ("Province of our Lord Jesus Christ, the Savior of the World"), which was subsequently abbreviated to "El Salvador" (The Savior).