Economy Of Ecuador

Economy overview Ecuador has substantial petroleum resources, which have accounted for 40% of the country's export earnings and one-fourth of public sector revenues in recent years. Consequently, fluctuations in world market prices can have a substantial domestic impact. In the late 1990s, Ecuador suffered its worst economic crisis, with natural disasters and sharp declines in world petroleum prices driving Ecuador's economy into free fall in 1999. Real GDP contracted by more than 6%, with poverty worsening significantly. The banking system also collapsed, and Ecuador defaulted on its external debt later that year. The currency depreciated by some 70% in 1999, and, on the brink of hyperinflation, the MAHAUD government announced it would dollarize the economy. A coup, however, ousted MAHAUD from office in January 2000, and after a short-lived junta failed to garner military support, Vice President Gustavo NOBOA took over the presidency. In March 2000, Congress approved a series of structural reforms that also provided the framework for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and growth returned to its pre-crisis levels in the years that followed. Under the administration of Lucio GUTIERREZ, who took office in January 2003, Ecuador benefited from higher world petroleum prices, but the government has made little progress on fiscal reforms and reforms of state-owned enterprises necessary to reduce Ecuador's vulnerability to petroleum price swings and financial crises.
 
GDP purchasing power parity - $45.65 billion (2004 est.)
 
GDP - real growth rate 2.5% (2004 est.)
 
GDP - per capita purchasing power parity - $3,300 (2004 est.)
 
GDP - composition by sector
agriculture: 8.7%
industry: 29.7%
services: 61.6% (2004 est.)
 
Investment gross fixed 21.7% of GDP (2004 est.)
 
Population below poverty line 65% (2003 est.)
 
Household income or consumption by percentage share
lowest 10%: 2.2%
highest 10%: 33.8% (1995)
 
Distribution of family income - Gini index 43.7 (1995)
 
Inflation rate consumer prices 7.9% (2004 est.)
 
Labor force 4.36 million (urban) (2004 est.)
 
Labor force by occupation agriculture 30%, industry 25%, services 45% (2001 est.)
 
Unemployment rate 9.8%; note - underemployment of 47% (2004 est.)
 
Budget
revenues: $6.908 billion
expenditures: planned $6.594 billion, including capital expenditures of $1.6 billion (2004 est.)
 
Public debt 53.7% of GDP (2004 est.)
 
Agriculture products bananas, coffee, cocoa, rice, potatoes, manioc (tapioca), plantains, sugarcane; cattle, sheep, pigs, beef, pork, dairy products; balsa wood; fish, shrimp
 
Industries petroleum, food processing, textiles, wood products, chemicals
 
Industrial production growth rate 5.3% (2004 est.)
 
Electricity production 75.23 billion kWh (2001)
 
Electricity production by source
fossil fuel: 81%
hydro: 19%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 69.96 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 421,200 bbl/day (2004 est.)
 
Oil consumption 129,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves 2.358 billion bbl (2004)
 
Natural gas production 160 million cu m (2001 est.)
 
Natural gas consumption 160 million cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 0 cu m (2001 est.)
 
Natural gas proved reserves 106.5 billion cu m (2004)
 
Current account balance $-117 million (2004 est.)
 
Exports $6.073 billion (2004 est.)
 
Exports commodities petroleum, bananas, cut flowers, shrimp
 
Exports partners US 42.4%, Colombia 5.7%, Germany 5.6% (2003)
 
Imports $6.22 billion (2003 est.)
 
Imports commodities consumer goods, industrial raw materials, capital goods
 
Imports partners US 23.9%, Colombia 12.8%, Venezuela 7.1%, Brazil 6.1%, Chile 4.8%, Japan 4.2% (2003)
 
Reserves of foreign exchange gold $1.161 billion (2004 est.)
 
Debt external $15.69 billion (2004 est.)
 
Economic aid recipient $120 million (2001)
 
Currency US dollar (USD)
 
Currency code USD
 
Exchange rates Ecuador formally adopted the US dollar as legal tender in March 2000
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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