Ecuador Economy Profile 2009

Economy - overview

Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and one-fourth of public sector revenues in recent years. In 1999/2000, Ecuador suffered a severe economic crisis, with GDP contracting by more than 6%. Poverty increased significantly, the banking system collapsed, and Ecuador defaulted on its external debt later that year. In March 2000, 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 5.5%, the highest five-year average in 25 years. The poverty rate declined but remained high at 38% in 2006. In 2006 the government imposed a windfall revenue tax on foreign oil companies, leading to the suspension of free trade negotiations with the US. These measures led to a drop in petroleum production in 2007. President Rafael CORREA raised the specter of debt default and followed through on those threats in December 2008 by defaulting on some commercial bond obligations. He also decreed a higher windfall revenue tax on private oil companies, then renegotiated their contracts to overcome the debilitating effect of the tax. This generated economic uncertainty; private investment has dropped and economic growth has slowed.

GDP (purchasing power parity)

$107.7 billion (2008 est.)
$101.2 billion (2007 est.)
$98.7 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$52.57 billion (2008 est.)

GDP - real growth rate

6.5% (2008 est.)
2.5% (2007 est.)
3.9% (2006 est.)

GDP - per capita (PPP)

$7,500 (2008 est.)
$7,200 (2007 est.)
$7,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 6.7%
industry: 34.3%
services: 59% (2008 est.)

Population below poverty line

38.3% (2006)

Labor force

4.64 million (urban) (2008 est.)

Labor force - by occupation

agriculture: 8.3%
industry: 21.2%
services: 70.4% (2005)

Unemployment rate

8.7% (2008 est.)
8.8% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.2%
highest 10%: 43.3%
note: data for urban households only (2007)

Distribution of family income - Gini index

46 (2006)
43.7 (1995)
note: data are for urban households

Investment (gross fixed)

22.1% of GDP (2008 est.)

Budget

revenues: $21.09 billion
expenditures: planned $21.35 billion (2008 est.)

Public debt

26.7% of GDP (2008 est.)

Inflation rate (consumer prices)

8.3% (2008 est.)
2.3% (2007 est.)

Central bank discount rate

9.14% (31 December 2008)
10.72% (31 December 2007)

Commercial bank prime lending rate

12.5% (15 October 2008)

Stock of money

$5.907 billion (31 December 2008)
$4.395 billion (31 December 2007)

Stock of quasi money

$9.383 billion (31 December 2008)
$7.974 billion (31 December 2007)

Stock of domestic credit

$10.13 billion (31 December 2008)
$8.926 billion (31 December 2007)

Industries

petroleum, food processing, textiles, wood products, chemicals

Industrial production growth rate

5.5% (2008 est.)

Electricity - production

14.84 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 81%
hydro: 19%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

12.9 billion kWh (2006 est.)

Electricity - exports

38.53 million kWh (2006 est.)

Electricity - imports

861 million kWh (2006 est.)

Oil - production

511,600 bbl/day (2007 est.)

Oil - consumption

160,500 bbl/day (2006 est.)

Oil - imports

47,060 bbl/day (2005)

Oil - exports

421,700 bbl/day (2005 est.)

Oil - proved reserves

4.5 billion bbl (1 January 2008 est.)

Natural gas - production

280 million cu m (2006 est.)

Natural gas - consumption

280 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

9.369 billion cu m (1 January 2006 est.)

Current Account Balance

$1.194 billion (2008 est.)
$1.65 billion (2007 est.)

Agriculture - products

bananas, coffee, cocoa, rice, potatoes, manioc (tapioca), plantains, sugarcane; cattle, sheep, pigs, beef, pork, dairy products; balsa wood; fish, shrimp

Exports

$19.15 billion (2008 est.)
$14.87 billion (2007 est.)

Exports - commodities

petroleum, bananas, cut flowers, shrimp, cacao, coffee, hemp, wood, fish

Exports - partners

US 43.8%, Chile 7.3%, Peru 7%, China 4.5%, Russia 4.1% (2008)

Imports

$17.79 billion (2008 est.)
$13.05 billion (2007 est.)

Imports - commodities

industrial materials, fuels and lubricants, nondurable consumer goods

Imports - partners

US 22.8%, China 9.7%, Colombia 9.6%, Brazil 5%, Japan 4.6% (2008)

Reserves of foreign exchange and gold

$4.473 billion (31 December 2008 est.)
$3.521 billion (31 December 2007 est.)

Debt - external

$18.11 billion (31 December 2008)
$NA (31 December 2007)

Stock of direct foreign investment - at home

$16.99 billion (31 December 2008 est.)
$16.31 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$8.518 billion (31 December 2008 est.)
$10.77 billion (31 December 2007 est.)

Market value of publicly traded shares

$4.562 billion (31 December 2008)
$4.266 billion (31 December 2007)
$4.04 billion (31 December 2006)

Economic aid - recipient

$209.5 million (2005)

Currency (code)

USD

Currency (code)

US dollar (USD)

Exchange rates

the US dollar is used; the sucre was eliminated in 2000

Fiscal year

calendar year