Why did manufacturing decline in El Salvador beginning in 1979?

Manufacturing in El Salvador experienced a significant decline beginning in 1979 primarily due to widespread civil unrest and political instability. This period of conflict, which escalated into a civil war throughout the 1980s and early 1990s, severely damaged the country's economy and infrastructure.12

Prior to this decline, the manufacturing sector had seen steady growth during the mid-20th century, supported by government incentives, foreign development credits, and the Central American Common Market. Following the conclusion of the civil war and the signing of peace accords in 1992, the economy began to recover, and manufacturing output eventually surpassed prewar levels.12