About Ecuador and Key Financial Statistics
About Ecuador and Key Financial Statistics
Overview of Economy:
Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and approximately 25% of public sector revenues in recent years.
In 1999/2000, Ecuador's economy suffered from a banking crisis, with GDP contracting by 5.3% and poverty increasing significantly. In March 2000, the Congress approved a series of structural reforms that also provided for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and positive growth returned in the years that followed, helped by high oil prices, remittances, and increased non-traditional exports. From 2002-06 the economy grew an average of 4.3% per year, the highest five-year average in 25 years. After moderate growth in 2007, the economy reached a growth rate of 6.4% in 2008, buoyed by high global petroleum prices and increased public sector investment. President Rafael CORREA Delgado, who took office in January 2007, defaulted in December 2008 on Ecuador's sovereign debt, which, with a total face value of approximately US$3.2 billion, represented about 30% of Ecuador's public external debt. In May 2009, Ecuador bought back 91% of its "defaulted" bonds via an international reverse auction.
Economic policies under the CORREA administration - for example, an announcement in late 2009 of its intention to terminate 13 bilateral investment treaties, including one with the United States - have generated economic uncertainty and discouraged private investment. China has become Ecuador's largest foreign lender since Quito defaulted in 2008, allowing the government to maintain a high rate of social spending; Ecuador contracted with the Chinese government for more than $9.9 billion in forward oil sales, project financing, and budget support loans as of December 2013.
Foreign investment levels in Ecuador continue to be the lowest in the region as a result of an unstable regulatory environment, weak rule of law, and the crowding-out effect of public investments. In 2014, oil output increased slightly and production is expected to remain steady in 2015, although prices will likely remain lower than in previous years. Faced with a 2013 trade deficit of $1.1 billion, Ecuador erected technical barriers to trade in December 2013, causing tensions with its largest trading partners. Ecuador also decriminalized intellectual property rights violations in February 2014. In March, 2015 Ecuador imposed tariff surcharges from 5%-45% on an estimated 32% of imports for 15 months.
Gross Domestic Product (In USD):
$181.2 billion (2014 est.)
$174.5 billion (2013 est.)
$166.8 billion (2012 est.)
Composition of Gross Domestic Product:
% Agricuture: 6
% Industry: 34.3
% Services: 59.7
Composition of Labor Force by Occupation:
% Agriculture: 27.8
% Industry: 17.8
% Services:54.4
Per Capita Income:
$11,300 (2014 est.)
$10,900 (2013 est.)
$10,400 (2012 est.)
Exports:
$26.6 billion (2014 est.)
$25.69 billion (2013 est.)
Key Export Commodities:
petroleum, bananas, cut flowers, shrimp, cacao, coffee, wood, fish
Export Partners:
US 43.9%, Chile 8.9%, Peru 6.1%, Panama 5.5% (2014)
Imports:
$26.67 billion (2014 est.)
$26.18 billion (2013 est.)
Key Import Commodities:
industrial materials, fuels and lubricants, nondurable consumer goods
Import Partners:
US 31.9%, China 13%, Colombia 8%, Panama 5.1% (2014)
Inflation Rate (Consumer Price Index):
3.6% (2014 est.)
2.7% (2013 est.)
Exchange Rate to USD:
the US dollar became Ecuador's currency in 2001
Unemployment Rate:
4.3% (2014 est.)
4% (2013 est.)
S&P Rating:
Standard & Poor's Ratings:
AAA: The best quality borrowers, reliable and stable
AA: Quality borrowers, a bit higher risk than AAA
A: Economic situation can affect finance
BBB: Medium class borrowers, which are satisfactory at the moment
BB: More prone to changes in the economy
B: Financial situation varies noticeably
CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.
Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings