Economy of Ecuador
Template:Short description Template:Use mdy dates Template:Use American English Template:Infobox economy
The economy of Ecuador is the eighth largest in Latin America and the 69th largest in the world by total GDP.<ref name=":0" /> Ecuador's economy is based on the export of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from Ecuadorian emigrants employed abroad.<ref name=":1">Template:Cite web</ref> In 2017, remittances constituted 2.7% of Ecuador's GDP.<ref>Template:Cite web</ref> The total trade amounted to 42% of the Ecuador's GDP in 2017.<ref>Template:Cite web</ref>
The country is substantially dependent on its petroleum resources.<ref>Template:Cite journal</ref> In 2017, oil accounted for about one-third of public-sector revenue and 32% of export earnings.<ref name=":2">Template:Cite web</ref><ref>Template:Cite web</ref> When Ecuador was part of OPEC, it was one of the smallest members<ref>Template:Cite news</ref> and produced about 531,300 barrels per day of petroleum in 2017.<ref name=":2"/><ref>Template:Cite web</ref> It is the world's largest exporter of bananas ($3.38 billion in 2017) and a major exporter of shrimp ($3.06 billion in 2017).<ref name=":0">Template:Cite web</ref> Exports of non-traditional products such as cut flowers ($846 million in 2017) and canned fish ($1.18 billion in 2017) have grown in recent years.<ref name=":0" />
In the past, Ecuador's economy depended largely on primary industries like agriculture, petroleum, and aquaculture. As a result of shifts in global market trends and development of technology, the country has experienced economic development in other sectors, such as textiles, processed food, metallurgy and the service sectors.<ref name=":1"/> Between 2006 and 2014, GDP growth averaged 4.3%, driven by high oil prices and external financing.<ref>Template:Cite web</ref> From 2015 until 2018, GDP growth averaged just 0.6%.<ref name=":3">Template:Cite web</ref> Ecuador's ex-president, Lenín Moreno, launched a radical transformation of Ecuador's economy after taking office in May 2017. The aim was to increase the private sector's weight, in particular the oil industry.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Agriculture
[edit]Ecuador is one of the 10 largest producers in the world of banana, cocoa and palm oil.<ref>Template:Cite web</ref>
In 2018, the country produced 7.5 million tons of sugarcane, 6.5 million tons of banana (6th largest producer in the world), 2.7 million tons of palm oil (6th largest producer in the world), 1.3 million tons of maize, 1.3 million tons of rice, 269 thousand tons of potato, 235 thousand tons of cocoa (7th largest producer in the world), 149 thousand tons of pineapple, 103 thousand tons of orange, in addition to smaller productions of other agricultural products.<ref>Template:Cite web</ref> In more recent years, banana production has increased to around 7 million tons annually (7.16 million tons produced in 2023).
Mining
[edit]In 2019, the country had an annual production of about 1 ton of antimony (14th largest producer in the world).<ref>Template:Cite web</ref>
In 2006, Ecuador had an annual production of about 5.3 tonnes of gold, being the 34th largest producer in the world at the time.<ref>Template:Cite web</ref> Ecuador produced 8.6 tons of gold in 2013, which was the absolute record between 2006 and 2017. In 2017, production was 7.3 tons.<ref>Template:Cite web</ref>
In terms of silver production, Ecuador produced 1 ton in 2017, which is the country's usual average.<ref>Template:Cite web</ref>
In 2019, in the north of Ecuador, a large deposit of gold, silver and copper was discovered.<ref>Template:Cite web</ref>
Industries
[edit]Oil accounts for 40% of exports and contributes to maintaining a positive trade balance.<ref>Template:Cite news</ref> Since the late '60s, the exploitation of oil increased production and reserves are estimated at 4.036 million barrels<ref>Expreso Template:Webarchive Expreso.ec. Retrieved on 2012-07-26.</ref>
In the agricultural sector, Ecuador is a major exporter of bananas (the largest exporter of bananas in the world<ref>Template:Cite report</ref>), cut flowers, cacao, coffee, shrimp, wood, and fish.<ref>Template:Cite book</ref> It is also significant in shrimp production, sugar cane, rice, cotton, corn, palm and coffee.Template:Citation needed The country's vast resources include large amounts of timber across the country, like eucalyptus and mangroves.<ref name="Resources Maps World Banks">Mapping for Results – Ecuador, Latin America & Caribbean. maps.worldbank.org </ref> Pines and cedars are planted in the region of the Sierra, walnuts and rosemary, and balsa wood, on Guayas River Basin.Template:Citation needed
Ecuador's tobacco is prized in the cigar industry due to the prolonged cloud cover and rich volcanic soil creating ideal growing conditions, especially for shade tobacco and Ecuadorian Sumatra Tobacco cigar wrapper leaves;<ref name="Ecuadorian Cigar Tobacco">Retrieved on 2022-09-04.</ref> exports topped $70M in 2018.<ref name="Ecuador Exports of tobacco">Retrieved on 2022-09-04.</ref>
Oil Industry in Ecuador Ecuador's oil industry is a cornerstone of its economy, contributing significantly to export earnings and government revenues. As of 2023, the country holds approximately 8.3 billion barrels of proven crude oil reserves . In 2022, crude oil accounted for about 27% of Ecuador's total export value, with major export destinations including Latin America, North America, and Asia.
The state-owned company Petroecuador plays a pivotal role in the oil sector, often operating in partnership with private and foreign corporations . Recent initiatives aim to boost oil production through foreign investments, with plans to attract approximately $42 billion in the oil sector by 2029 .
However, oil extraction has raised environmental and social concerns, particularly in the Amazon region. In 2023, a national referendum led to the cessation of oil drilling in Block 43 within Yasuni National Park, a biodiverse area home to Indigenous communities.
Agricultural Sector in Ecuador Agriculture remains a vital component of Ecuador's economy, accounting for a significant portion of exports. The country is the world's largest exporter of bananas, with exports valued at approximately $2 billion . Other major agricultural exports include shrimp, cacao, coffee, and cut flowers. In 2020, agricultural products represented about 41.1% of Ecuador's total export.
Ecuador's diverse climate and fertile soil enable the cultivation of various crops, including rice, sugar cane, cotton, corn, and palm. The country's forestry resources, such as eucalyptus, mangroves, pine, cedar, and balsa wood, also contribute to its export economy.
The industry is concentrated mainly in Guayaquil, the largest industrial center, and in Quito, where in recent years the industry has grown considerably. This city is also the largest business center of the country.<ref>Ranking 2010 – Ranking completo Template:Webarchive. Rankings.americaeconomia.com. Retrieved on 2012-07-26.</ref> Industrial production is directed primarily to the domestic market.Template:Citation needed Despite this, there is limited export of products produced or processed industrially.Template:Citation needed These include canned foods, liquor, jewelry, furniture, and more.Template:Citation needed Minor industrial activity is also concentrated in Cuenca.<ref name="Industrias en Cuenca">Industrias en CUENCA. Guia-cuenca.guiaespana.com.es. Retrieved on 2012-08-21.</ref>
The dairy industry is represented by companies such as Tonicorp,<ref>Template:Cite web</ref> which is owned by the Coca Cola Company.<ref>Template:Cite web</ref>
Electricity
[edit]As of December 2022, the generation and transmission infrastructure of Ecuador included:Template:Sfn
- total installed generation capacity of 8,864 megawatts (MW) that included
- 5,425 MW of renewable energy generation with
- about 5200 MW of hydropower (in Ecuador, considered as renewable);
- 5,425 MW of renewable energy generation with
- National Interconnection System (SNI) that was able to use 7,472 MW of the total capacity above (including 4375 MW from renewable sources). The remaining 1,390 MW are not part of the countrywide grid;Template:Sfn
- National Transmission System (SNT) with line voltages 500 kilovolt (kV), 230 kV and 138 kV, 4,382 km of single-circuit lines and 2,462 km of double-circuit lines, including
Distribution is provided through distribution companies with total billing of 2 billion US dollars and electricity losses of 13.25%. As of December 2022, they managed:Template:Sfn
- 370 substations with total capacity of 8,545 megavolt-amperes (MVA)
- 67 sectioning substations;Template:Clarify
- 5,730 km of subtransmissionTemplate:Clarify lines;
- 111,276 km of medium voltage lines;
- 105,469 km of low voltage lines
- 360,000 distribution transformers with a total capacity of 14,100 MVA;
- 5.56 million electrical meters (coverage of 97.4%).
The peak demand on the SNI grid occurs in April (4,388 MW in 2022).Template:Sfn The total generation in 2022 was 33 terawatt-hours (TWh) with 87% delivered by SNI and the rest by provider unincorporated into the grid. The breakdown by the power source at the SNI was as follows:Template:Sfn
- hydroelectric 24.6 TWh (85.3%);
- fossil fuel 3.8 TWh (13%);
- biomass 0.35 TWh (1.2%);
- solar photovoltaic, biogas, wind energy less than 1% combined.
The amount of reported unavailable generation capacity varied between 1,170 and 1,610 GW in 2019-2022, approximately evenly split between hydro and thermal power stations.Template:Sfn The plan of r2023-2032 called for major expansion of the generation capacity, primarily renewable energy (additional 6,300 MW), but with 700 MW of "firm" (thermal) capacity scheduled to come on-line in 2024-2025.Template:Sfn This "firm" generation was intended for the electric grid security and "quality of supply".Template:Sfn
During the 2023-2024 Ecuador electricity crisis, in the fall of 2024, the amount of thermal generation was significantly lower than the numbers above would suggest. For example, according to Miguel Calahorrano, an ex-minister of electricity and renewable energy, only Trinitaria (125 MW), Machala Gas (125 MW), G. Zevallos (146 MW) and Jaramijó (140 MW) were operating at high power until October 15, 2024.Template:Sfn
Sciences and research
[edit]
Ecuador was placed in 96th position of innovation in technology in a 2013 World Economic Forum study.<ref>Ecuador ocupa el puesto 96 en innovación tecnológica. elcomercio.com. 19 September 2013</ref> Ecuador was ranked 91st in the Global Innovation Index in 2021 up from 99th in 2020.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The most notable icons in Ecuadorian sciences are the mathematician and cartographer Pedro Vicente Maldonado, born in Riobamba in 1707, and the printer, independence pioneer, and medical pioneer Eugenio Espejo, born in 1747 in Quito. Among other notable Ecuadorian scientists and engineers are Lieutenant Jose Rodriguez Labandera,<ref>Lavandera, J.R. (27 December 2009).Template:Cite web . expreso.ec</ref> who built the first submarine in Latin America in 1837; Reinaldo Espinosa Aguilar (1898–1950), a botanist and biologist of Andean flora; and José Aurelio Dueñas (1880–1961), a chemist and inventor of a method of textile serigraphy, reputed to have many wives.
The major areas of scientific research in Ecuador have been in the medical fields, tropical and infectious diseases treatments, agricultural engineering, pharmaceutical research, and bioengineering. Being a small country and a consumer of foreign technology, Ecuador has favored research supported by entrepreneurship in information technology. The antivirus program Checkprogram, banking protection system MdLock, and Core Banking Software Cobis are products of Ecuadorian development.<ref>Template:Cite web</ref>
The scientific production in hard sciences has been limited due to lack of funding but focused around physics, statistics, and partial differential equations in mathematics.Template:Citation needed In the case of engineering fields, the majority of scientific production comes from the top three polytechnic institutions: Escuela Superior Politécnica del Litoral – ESPOL, Universidad de Las Fuerzas Armadas – ESPE, and Escuela Politécnica Nacional EPN. The Center for Research and Technology Development in Ecuador is an autonomous center for research and technology development funded by Senecyt.
However, according to Nature, the multidisciplinary scientific journal, the top 10 institutions that carry the most outstanding scientific contributions are: Yachay Tech University (Yachay Tech), Escuela Politécnica Nacional (EPN), and Universidad San Francisco de Quito (USFQ).<ref>Template:Cite web</ref>
Trade
[edit]Template:Update section Template:See also The overall trade balance for August 2012 was a surplus of almost 390 million dollars for the first six months of 2012, a huge figure compared with that of 2007, which reached only $5.7 million; the surplus had risen by about 425 million compared to 2006.<ref>Template:Cite book</ref> This circumstance was due to the fact that imports grew faster than exports.<ref>Trade Balance Details | Press Releases. Cepr.net (May 2, 2012). Retrieved on 2012-08-22.</ref> The oil trade balance positive had revenues of $3.295 million in 2008, while non-oil was negative amounting to 2.842 million dollars.Template:Citation needed. The trade balance was positive in 2019 and 2020 with 2.05 billion dollars and 6.4 billion dollars. In 2016, the trade balance was positive (608 million dollars) but negative in 2017 (-723 million dollars) and 2018 (1.41 billion dollars).<ref>Template:Cite web</ref> The trade balance with Argentina, Colombia and Asia is negative.<ref>Ecuador: Evolucion de la Balanza Comercial Template:Webarchive. Banco Central del Ecuador (January–February 2008).</ref>
Ecuador has negotiated bilateral treaties with other countries, besides belonging to the Andean Community of Nations,<ref>South American Community Nations – Andean Community -CAN Template:Webarchive. Comunidadandina.org. Retrieved on 2012-08-21.</ref> and an associate member of Mercosur.<ref>Profile: Mercosur – Common Market of the South. BBC News (February 15, 2012). Retrieved on 2012-08-21.</ref> It also belongs to the World Trade Organization (WTO), in addition to the Inter-American Development Bank (IDB), World Bank, International Monetary Fund (IMF), Development Bank of Latin America and the Caribbean (CAF) and other multilateral agencies.<ref>Which are its member countries? Template:Webarchive aladi.org</ref><ref>UNASUR (South American organization) – Britannica Online Encyclopedia. Britannica.com (May 23, 2008). Retrieved on 2012-08-21.</ref><ref>Union of South American Nations Template:Webarchive. Internationaldemocracywatch.org. Retrieved on 2012-08-21.</ref> In April 2007, Ecuador paid off its debt to the IMF thus ending an era of interventionism of the Agency in the country.<ref>Template:Cite news</ref> The public finance of Ecuador consists of the Central Bank of Ecuador (BCE), the National Development Bank (BNF), the State Bank, the National Finance Corporation, the Ecuadorian Housing Bank (BEV) and the Ecuadorian Educational Loans and Grants.<ref name="Student Loans and Grants">Ecuador student loan program increases funding for overseas study. Bmimedia.net (January 6, 1990). Retrieved on 2012-08-21.</ref>
Economic history
[edit]Template:Main Deteriorating economic performance in 1997–98 culminated in a severe financial crisis in 1999. The crisis was precipitated by a number of external shocks, including the El Niño weather phenomenon in 1997, a sharp drop in global oil prices in 1997–98, and international emerging market instability in 1997–98. These factors highlighted the Government of Ecuador's unsustainable economic policy mix of large fiscal deficits and expansionary money policy and resulted in a 7.3% contraction of GDP, annual year-on-year inflation of 52.2%, and a 65% devaluation of the national currency in 1999.
On January 9, 2000, the administration of President Jamil Mahuad announced its intention to adopt the U.S. dollar as the official currency of Ecuador to address the ongoing economic crisis. Subsequent protest led to the 2000 Ecuadorean coup d'état which saw Mahuad's removal from office and the elevation of Vice President Gustavo Noboa to the presidency.
US Dollar has been the only official currency of Ecuador since the year 2000.<ref>Template:Cite web</ref>
The Noboa government confirmed its commitment to convert to the dollar as the centerpiece of its economic recovery strategy, successfully completing the transition from sucres to dollars in 2001. Following the completion of a one-year stand-by program with the International Monetary Fund (IMF) in December 2001, Ecuador successfully negotiated a new $205 million stand-by agreement with the IMF in March 2003.
Buoyed by higher oil prices, the Ecuadorian economy experienced a modest recovery in 2000–01, with GDP rising 2.3% in 2000 and 5.4% in 2001.<ref>Template:Cite web</ref> GDP growth leveled off to 2.7% in 2002.<ref>Template:Cite web</ref> Inflation fell from an annual rate of 96.1% in 2000 to an annual rate of 37.7% in 2001; 12.6% for 2002.<ref>Template:Cite web</ref>
The completion of the second Transandean Oil Pipeline (OCP in Spanish) in 2003 enabled Ecuador to expand oil exports. The OCP will double Ecuador's oil transport capacity.
Ecuador's economy is the eighth largest in Latin America and experienced an average growth of 4.6% per year between 2000 and 2006.<ref>Yahoo! Noticias España – Los titulares de hoy. Es.noticias.yahoo.com (April 20, 2011). Retrieved on 2012-07-26.</ref> In January 2009, the Central Bank of Ecuador (BCE) put the 2010 growth forecast at 6.88%.<ref>El Banco Central de Ecuador sitúa el crecimiento del 2008 en más del 6%. soitu.es (January 16, 2009). Retrieved on 2012-07-26.</ref> GDP doubled between 1999 and 2007, reaching 65,490 million dollars according to BCE.<ref>Banco Central del Ecuador – Resumen de pib Template:Webarchive. Bce.fin.ec (July 11, 2012). Retrieved on 2012-07-26.</ref> Inflation rate up to January 2008 was located about 1.14%, the highest recorded in the last year, according to Government.<ref>Ecuador Inflation rate (consumer prices) – Economy. Indexmundi.com (July 26, 2012). Retrieved on 2012-08-21.</ref><ref>Gill, Nathan. (January 6, 2012) Ecuadorian Inflation Accelerated to Three-Year High in 2011. Bloomberg. Retrieved on 2012-08-21.</ref> The monthly unemployment rate remained at about 6 and 8 percent from December 2007 until September 2008, however, it went up to about 9 percent in October and dropped again in November 2008 to 8 percent.<ref>Ecuador en Cifras. Ecuador en Cifras. Retrieved on 2012-07-26.</ref>
Between 2006 and 2009, the government increased spending on social welfare and education from 2.6% to 5.2% of its GDP.<ref name="Economy Overview Since 2006">Ecuador's Economy Since 2007 | Reports Template:Webarchive. Cepr.net. Retrieved on 2012-08-21.</ref> Starting in 2007, when its economy was surpassed by the economic crisis, Ecuador was subject to a number of economic policy reforms by the government that have helped steer the Ecuadorian economy to a sustained, substantial, and focused achievement of financial stability and consistent social policy.<ref name="Economy Overview Since 2006"/> Template:Vague Such policies were expansionary fiscal policies, of access to housing finance, stimulus packs, and limiting the amount of money reserves banks could keep abroad.<ref name="Economy Overview Since 2006"/> The Ecuadorian government has made huge investments in education and infrastructure throughout the nation, which have improved the lives of the poor.<ref>América Latina y el Caribe – Ecuador – Datos destacados. Web.worldbank.org (May 17, 2005). Retrieved on 2012-07-26.</ref>
On December 12, 2008, President Rafael Correa announced that Ecuador would not pay $30.6m in interest to lenders of a $510m loan, claiming that they were monsters.<ref name="FT081213">Mapstone, (December 13, 2008). Ecuador defaults on sovereign bonds. Financial Times</ref> In addition it claimed that $3.8bn in foreign debt negotiated by previous administrations was illegitimate because it was authorized without executive decree.<ref name="FT081213"/> At the time of the announcement, the country had $5.65bn in cash reserves.<ref name="FT081213"/>
In 2009, economic growth declined to 0.6% during the global recession, accompanied by falling oil prices and a decline in remittances provided by Ecuadorians living and working abroad (a major source of external revenues).<ref name=":4">Template:Citation-attribution</ref> Showing signs of recovery in 2010, the economy rebounded and grew by 2.8%. After growth of 7.4% in 2011, Ecuador's growth averaged 4.5% from 2012 to 2014.<ref name=":4"/>
Some observers have attributed the high growth to a public investment boom that was fueled by high oil prices and lending from China. According to the U.S. Energy Information Administration, Ecuador was the third largest source of foreign oil to the western United States in 2014.<ref name=":4"/> However, in the middle of 2014 after the price of oil declined significantly, Ecuador's oil earnings fell.<ref name=":4"/> As a consequence, the Economist Intelligence Unit (EIU) forecast that Ecuador's economy would contract slightly in 2015, although the economy ultimately grew by less than half a percent.<ref name=":4"/> President Correa's plans to begin extracting crude oil from the Ishpingo, Tambochoa, and Tiputini field in Yasuní National Park in the Amazon to provide an economic boost did not salvage the economy from going into recession.<ref name=":4"/> In 2016, Ecuador's gross domestic product contracted by 1.6%.<ref name=":4"/>
Ecuador's economic slowdown in 2016 and the country's need for external finance were exacerbated by a deadly April 2016 earthquake.<ref name=":4"/> Ecuador's estimated $3 billion costs for reconstruction and humanitarian assistance for 720,000 people in the affected region remain a burden that the government and private sector have sought to address.<ref name=":4"/> In response, the U.S. Office of Foreign Disaster Assistance provided more than $3 million in assistance, including provisions airlifted in for 50,000 people in the earthquake-prone region and assistance with water and sanitation systems in affected areas.<ref name=":4"/> A U.N. appeal by the Office of Coordination of Humanitarian Assistance sought to raise $73 million.<ref name=":4"/> However, as of July 2016, only one-fifth of this amount had been received from donor countries, including the United States.<ref name=":4"/>
The Correa government increased a value-added tax and implemented a plan to further cut government expenditures after cutting capital expenditures by 30%.<ref name=":4"/> Despite President Correa's reluctance to ask for assistance from the International Monetary Fund (IMF), the IMF approved a request for $364 million in financial support under its Rapid Financing Instrument in early July 2016 for Ecuador.<ref name=":4"/> Additional loans from China and the World Bank to help ease the government's balance-of-payments needs were considered.<ref name=":4"/>
Ecuador's access to global financial markets also had been limited by its 2008 default on $3.2 billion in debt to global lenders.<ref name=":4"/> Consequently, the Correa government turned to nontraditional allies, such as China, for external finance.<ref name=":4"/> From 2005 to 2014, Chinese banks provided almost $11 billion of financing to Ecuador.<ref name=":4"/> The Correa government also asked China for an additional $7.5 billion in financing in early 2015 as crude oil prices—the nation's biggest export—weakened further.<ref name=":4"/> China agreed to the financing request and began to disburse funding, including nearly $1 billion in May and June 2015.<ref name=":4"/> Ecuador successfully returned to the international capital market in June 2014 with a $2 billion bond issue followed by additional smaller bond issues in 2015.<ref name=":4"/> President Moreno later discovered loans made by China over the years currently require that Ecuador pay China back with almost 500 barrels of crude oil—or roughly three years of the country's oil production.<ref name=":4"/> According to press reports, some private sector analysts question whether Ecuador will be able to meet its debt obligations given two strains on the country's public finances: the slump in oil income due to the commodity's low price and the strong U.S. dollar, which, as a result of Ecuador's dollarized economy, makes the country's exports less globally competitive.<ref name=":4"/>
Ecuador withdrew from efforts to develop a regional free trade agreement (FTA) between the United States and Bolivia, Colombia, Ecuador, and Peru in 2006.<ref name=":4"/> The United States subsequently signed bilateral FTAs with Peru and Colombia, but Ecuador showed no interest in pursuing an FTA with the United States.<ref name=":4"/> Following Venezuela's acceptance in 2012 to full membership in the South American customs union, Mercosur (Mercado Común del Sur or Common Market of the South), the leftist governments in Bolivia and Ecuador applied to move from observer status to full membership in the trade bloc originally composed of Argentina, Brazil, Paraguay, and Uruguay.<ref name=":4"/> According to some observers, out of a concern for Ecuador's struggling non-oil exporters, Correa embraced a trade agreement with the European Union (EU) as part of the EU-Andean Community Association agreement that went into effect in January 2017.<ref name=":4"/>
The International Monetary Fund approved an agreement with Ecuador in March 2019.<ref name=":3"/> This arrangement would provide support ($10 billion) for the Ecuadorian government's economic policies over three years (2018–2021 Prosperity Plan).<ref name=":3"/><ref>Template:Cite web</ref>
Poverty and inequality
[edit]Template:As of, an estimated 9 million Ecuadorians have an economic occupation and about 1.01 million inhabitants are in unemployment condition.<ref>Ecuador en Cifras. Ecuador en Cifras. Retrieved on 2012-07-26.</ref> In 1998, 10% of the richest population had 42.5% of income, while 10% of the poor had only 0.6% of income.<ref>Ecuador : Financiamiento por volumen. Web.worldbank.org. Retrieved on 2012-08-21.</ref> The rates of poverty were higher for populations of indigenous, afro-descendents, and rural sectors.<ref>Template:Cite web</ref> During the same year, 7.6% of health spending went to the 20% of the poor, while 20% of the rich population received 38.1% of this expenditure. The extreme poverty rate has declined significantly between 1999 and 2010.<ref>New Paper Examines Ecuador's Success in Emerging from Economic Recession; Reducing Poverty and Unemployment | Press Releases Template:Webarchive. Cepr.net (May 2, 2012). Retrieved on 2012-08-21.</ref> In 2001 it was estimated at 40% of the population, while by 2011 the figure dropped to 17.4% of the total population.<ref>Rebeca, Ray and Sara, Kozameh. (May 2012) P. 15. [1]. cepr.net</ref> This is explained largely by emigration and economic stability achieved after adopting the U.S. dollar as official means of transaction .<ref>Ecuador. Web.worldbank.org (May 11, 2012). Retrieved on 2012-07-26.</ref> Poverty rates were higher for indigenous peoples, Afro-descendants and rural areas, reaching 44% of the Native ancestry population.
Infrastructure development
[edit]The industrial sector has had enormous difficulty to emerge significantly. The industrial sector's main problem is the deficit of energy,<ref name="eluniverso.com">Template:Cite web</ref> which the current government has tackled with the improvement of performance on existing hydro plants, and the creation of new ones. Such projects included negotiation of the Coca-Codo hydroplant.<ref name="eluniverso.com"/><ref>Template:Cite web</ref> Incentives of financing, tributary incentives, tariffs, and others will be implemented, that is intended to benefit areas of tourism, food processing, renewable and alternative energy sources, bioenergies, pharmaceutical and chemical products, biochemical and environmental biomedecine, services, automotive metallurgical industry, footwear, and automotive parts and pieces, among others.<ref name="eluniverso.com"/> A 500 kV transmission line increases national grid strength and electricity trade with Peru and Colombia.<ref>Template:Cite web</ref>
Statistics
[edit]Main economic indicators
[edit]The following table shows the main economic indicators in 1980–2019 (with IMF staff stimtates in 2020–2025). Inflation below 5% is in green.<ref>Template:Cite web</ref>
See also
[edit]- Banking in Ecuador
- Economy of South America
- Economic history of Ecuador
- Ecuador Census
- China–Ecuador relations
- Latin American economy
- List of Latin American and Caribbean countries by GDP growth
- List of Latin American and Caribbean countries by GDP (nominal)
- List of Latin American and Caribbean countries by GDP (PPP)
References
[edit]Further reading
[edit]External links
[edit]- World Bank Summary Trade Statistics Ecuador
- Template:Cite journal
- Tariffs applied by Ecuador as provided by ITC's Market Access Map, an online database of customs tariffs and market requirements.
- Template:Cite web
- Electricity grid map
- Solar insolation maps