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| 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">http://eluniverso.com/2010/05/26/1/1356/ecuador-incentivara-14-sectores-economicos.html?p=1354&m=638</ref> which the current government has tackled with the improvement of performance on existing hydro plants, and the creation of new ones. Such projects currently include negotiation of the Coca-Codo hydroplant.<ref name="eluniverso.com" /> Incentives of financing, tributary incentives, tariffs, and others will be implemented, that is intended to benefit areas of tourism, foods process, renewable and alternative energies, 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" /> | 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">http://eluniverso.com/2010/05/26/1/1356/ecuador-incentivara-14-sectores-economicos.html?p=1354&m=638</ref> which the current government has tackled with the improvement of performance on existing hydro plants, and the creation of new ones. Such projects currently include negotiation of the Coca-Codo hydroplant.<ref name="eluniverso.com" /> Incentives of financing, tributary incentives, tariffs, and others will be implemented, that is intended to benefit areas of tourism, foods process, renewable and alternative energies, 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" /> | ||
| go look somewhere esle | |||
| == Economy 2007–11 == | |||
| ] | |||
| 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>. 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>. 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>. 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>. Indexmundi.com (July 26, 2012). Retrieved on 2012-08-21.</ref><ref>Gill, Nathan. (January 6, 2012) . 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. Retrieved on 2012-07-26.</ref> An estimated 9 million Ecuadorians have an economic occupation and about 1.01 million inhabitants are in unemployment condition.<ref>. 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>. 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>{{cite web|url=http://web.worldbank.org/WBSITE/EXTERNAL/BANCOMUNDIAL/EXTSPPAISES/LACINSPANISHEXT/0,,contentMDK:20505827~menuPK:508626~pagePK:146736~piPK:226340~theSitePK:489669,00.html |publisher=Banco Mundial |title=Index of Poverty }}</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>. 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. . 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>. 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. | |||
| Oil accounts for 40% of exports and contributes to maintaining a positive trade balance.<ref>{{cite web|url=http://af.reuters.com/article/energyOilNews/idAFL2E8JDF2K20120813|title=Ecuador first-half trade surplus rises to $390 mln|date=13 August 2012|publisher=Reuters}}</ref> Since the late '60s, the exploitation of oil increased production and reserves are estimated at 4.036 million barrels<ref> Expreso.ec. Retrieved on 2012-07-26.</ref> | |||
| 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.{{citation needed|date=August 2012}} This circumstance was due to the fact that imports grew faster than exports.<ref>. 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.{{citation needed|date=August 2012}} The trade balance with the United States, Chile, the European Union, Bolivia, Peru, Brazil and Mexico is positive.{{citation needed|date=August 2012}} The trade balance with Argentina, Colombia and Asia is negative.<ref>. Banco Central del Ecuador (January–February 2008).</ref> | |||
| In the agricultural sector, Ecuador is a major exporter of bananas (first place worldwide in production and export), flowers, and the eighth largest producer of cocoa.{{citation needed|date=August 2012}} It is also significant the shrimp production, sugar cane, rice, cotton, corn, palm and coffee.{{citation needed|date=August 2012}} The country's vast resources include large amounts of timber across the country, like eucalyptus and mangroves.<ref name="Resources Maps World Banks">. 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.{{citation needed|date=August 2012}} | |||
| The industry is concentrated mainly in ], the largest industrial center, and in ] where in recent years the industry has grown considerably, this city is also the largest business center of the country.<ref>. Rankings.americaeconomia.com. Retrieved on 2012-07-26.</ref> Industrial production is directed primarily to domestic market.{{citation needed|date=August 2012}} Despite this, there is limited export of products produced or processed industrially.{{citation needed|date=August 2012}} These include canned foods, liquor, jewelry, furniture and more.{{citation needed|date=August 2012}} A minor industrial activity is also concentrated in ].<ref name="Industrias en Cuenca">. Guia-cuenca.guiaespana.com.es. Retrieved on 2012-08-21.</ref> | |||
| Ecuador has negotiated bilateral treaties with other countries, besides belonging to the ],<ref>. Comunidadandina.org. Retrieved on 2012-08-21.</ref> and an associate member of ].<ref>. BBC News (February 15, 2012). Retrieved on 2012-08-21.</ref> It also belongs to the ] (WTO), in addition to the ] (IDB), ], ] (IMF), ] (CAF) and other multilateral agencies.<ref> aladi.org</ref><ref>. Britannica.com (May 23, 2008). Retrieved on 2012-08-21.</ref><ref>. 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.{{citation needed|date=August 2012}} 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">. Bmimedia.net (January 6, 1990). Retrieved on 2012-08-21.</ref> | |||
| Between 2006 and 2009, the government increased social spending, on social welfare, and education from 2.6% to 5.2% of its GDP.<ref name="Economy Overview Since 2006">. Cepr.net. Retrieved on 2012-08-21.</ref> Starting in 2007 with an economy surpassed by the economic crisis, Ecuador was subject to a number of economic policy reforms by Government that have helped steer the Ecuadorian economy to a sustained, substantial, and focused to achieve financial stability and social policy.<ref name="Economy Overview Since 2006" /> {{vague|date=August 2012}} 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" /> Ecuadorian government has made huge investments in education and infrastructure throughout the nation, which have improved the lives of the poor.<ref>. Web.worldbank.org (May 17, 2005). Retrieved on 2012-07-26.</ref> | |||
| On December 12, 2008 President ] 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). . ]</ref> In addition it claimed that $3.8bn in foreign debt negotiated by previous administrations was illegitimate because it was authorised without executive decree.<ref name="FT081213" /> At the time of the announcement, the country had $5.65bn in cash reserves.<ref name="FT081213" /> | |||
| == See also == | == See also == | ||
Revision as of 00:03, 12 June 2017
 | This article was imported from the CIA's World Factbook. Please help rewrite this article. |
 | This article needs to be updated. Please help update this article to reflect recent events or newly available information. (February 2011) |
 WTO headquartered in Guayaquil | |
| Currency | US dollar |
|---|---|
| Fiscal year | calendar year |
| Trade organizations | Andean Community of Nations, WTO, Unasur, ALADI, Bolivarian Alliance for the Americas, Mercosur(Associate) |
| Statistics | |
| GDP |  $170 billion (PPP) (2014 est.)
$84.5 billion (2014 est.) |
| GDP rank | 63rd (PPP, 2012 est.) |
| GDP growth | 5.6% (2014) |
| GDP per capita | $11,160 (2014 est.) |
| GDP by sector | agriculture: 8.4%; industry: 36.1%; services: 57.5% (2012 est.) |
| Inflation (CPI) | 3.41% (1Q 2014) |
| Population below poverty line | 25.55% (2013) |
| Gini coefficient | 47.9 (2009) |
| Labor force | 6.779 million (December 2012 est.) |
| Labor force by occupation | agriculture: 27.6%; industry: 18.8%; services: 53.6% (2010) |
| Unemployment | 4.86% (2014 est.) |
| Main industries | petroleum, food processing, textiles, wood products, chemicals |
| External | |
| Exports |  $20.4 billion (2014 est.) |
| Export goods | Petroleum, bananas, cut flowers, shrimp, cacao, coffee, wood, fish |
| Main export partners |  United States 37.0% Chile 8.1% Peru 7.1% Colombia 4.6% Japan 4.5%  Russia 4.4% (2012 est.) |
| Imports | $23.7 billion (2014 est.) |
| Import goods | industrial materials, fuels and lubricants, nondurable consumer goods |
| Main import partners | United States 28.0% China 11.2% Colombia 9.3% Peru 4.9% (2012 est.) |
| FDI stock | $113.11 billion (December 31, 2012 est.) |
| Gross external debt | $20.03 billion (December 31, 2012 est.) |
| Public finances | |
| Government debt | 18.7% of GDP (2013 est.) |
| Revenues | $15.59 billion (2012 est.) |
| Expenses | $20.10 billion (2012 est.) |
| Economic aid | $209.5 million (2005) |
| Foreign reserves | $2.482 billion (December 31, 2012 est.) |
| All values, unless otherwise stated, are in US dollars. | |
The economy of Ecuador is based mostly on exports of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from nearly a million Ecuadorian emigrants employed abroad. In 2002, oil accounted for about one-third of public-sector revenue and 40% of export earnings. Ecuador is the world's largest exporter of bananas ($936.5 million in 2002) and a major exporter of shrimp ($251 million in 2002). Exports of non-traditional products such as flowers ($291 million in 2002) and canned fish ($333 million in 2002) have grown in recent years. Industry is largely oriented to servicing the domestic market.
Diversity and sustainability
Ecuadorians often describe the country as a series of "micro-environments" and economic-cultural regions that are reflected in the country's cultural and geographic diversity of coastal fishing and trade (with Guayaquil as a port), highland (with Quito as a center), and the Amazon or jungle region, with several indigenous populations continually facing intrusions by "colonos" (colonists) seeking to use land for farming including palm oil, or for oil and resource exploitation. Various studies have noted the threats to the country's cultures and the continuing growth in population that has contributed to poverty and are a reflection of unsustainable development. Migration of more than 111,000 Ecuadorians following crisis in 1999 also highlights the population growth and inability of the resource base to sustain it, as well as the lack of appropriate economic planning in the country to fit historical traditions or the resource base.
Political tensions with neighboring countries like Peru over mining and other resources to support the growing population, and struggles between the growing urban mestizo population and indigenous peoples over land and resources have underlined the political struggles in recent years. Though foreign-driven economic approaches have mostly focused on exports and on resource exploitation and development rather than on sustainable economic development and stability within the regions and the micro-environments, some economic teams, such as one led by David Lempert, have sought to focus on sustainability.
Economy 1998–2006
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.
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. GDP growth leveled off to 3.3% in 2002. Although final figures are not yet available, it is expected to fall further, to about 1.7%, for 2003. GDP growth is estimated to recover to over 4% in 2004, due largely to expanded oil exports. Inflation fell from an annual rate of 96.1% in 2000 to an annual rate of 37.7% in 2001; 12.6% for 2002. Despite recent gains, 40% of the population lives below the poverty line, more than double the rate five years ago.
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.
Current infrastructure development
The industrial sector has had enormous difficulty to emerge significantly. The industrial sector's main problem is the deficit of energy, which the current government has tackled with the improvement of performance on existing hydro plants, and the creation of new ones. Such projects currently include negotiation of the Coca-Codo hydroplant. Incentives of financing, tributary incentives, tariffs, and others will be implemented, that is intended to benefit areas of tourism, foods process, renewable and alternative energies, bioenergies, pharmaceutical and chemical products, biochemical and environmental biomedecine, services, automotive metallurgical industry, footwear, and automotive parts and pieces, among others.
go look somewhere esle
See also
- Banking in Ecuador
- Economy of South America
- Economic history of Ecuador
- Ecuador Census
- 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)
External links
- World Bank Summary Trade Statistics Ecuador
- Parsons, James J. (1957). "Bananas in Ecuador: A New Chapter in the History of Tropical Agriculture". Economic Geography. 33 (3): 201. doi:10.2307/142308. ISSN 0013-0095. JSTOR 142308.
- Tariffs applied by Ecuador as provided by ITC's Market Access Map, an online database of customs tariffs and market requirements.
References
- "Export Partners of Ecuador". CIA World Factbook. 2012. Retrieved July 26, 2013.
- "Import Partners of Ecuador". CIA World Factbook. 2012. Retrieved July 26, 2013.
- ^ David Lempert, Kim McCarty and Craig Mitchell, "A Model Development Plan: New Strategies, New Alternatives," Westport, CT: Praeger Greenwood Press, 1995, 1998.
- "Ecuador Inflation rate (consumer prices)". Index Mundi. June 30, 2015.
- ^ http://eluniverso.com/2010/05/26/1/1356/ecuador-incentivara-14-sectores-economicos.html?p=1354&m=638
- Ecuador
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