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Ecuador vs. Colombia

Economy

EcuadorColombia
Economy - overview

Ecuador is substantially dependent on its petroleum resources, which accounted for about a third of the country's export earnings in 2017. Remittances from overseas Ecuadorian are also important.

In 1999/2000, Ecuador's economy suffered from a banking crisis that lead to some reforms, including adoption of the US dollar as legal tender. Dollarization stabilized the economy, and positive growth returned in most of the years that followed. China has become Ecuador's largest foreign lender since 2008 and now accounts for 77.7% of the Ecuador’s bilateral debt. Various economic policies under the CORREA administration, such as an announcement in 2017 that Ecuador would terminate 13 bilateral investment treaties - including one with the US, generated economic uncertainty and discouraged private investment.

Faced with a 2013 trade deficit of $1.1 billion, Ecuador imposed tariff surcharges from 5% to 45% on an estimated 32% of imports. Ecuador’s economy fell into recession in 2015 and remained in recession in 2016. Declining oil prices and exports forced the CORREA administration to cut government oulays. Foreign investment in Ecuador is low as a result of the unstable regulatory environment and weak rule of law.

n April of 2017, Lenin MORENO was elected President of Ecuador by popular vote. His immediate challenge was to reengage the private sector to improve cash flow in the country. Ecuador’s economy returned to positive, but sluggish, growth. In early 2018, the MORENO administration held a public referendum on seven economic and political issues in a move counter to CORREA-administration policies, reduce corruption, strengthen democracy, and revive employment and the economy. The referendum resulted in repeal of taxes associated with recovery from the earthquake of 2016, reduced restrictions on metal mining in the Yasuni Intangible Zone - a protected area, and several political reforms.

Colombia heavily depends on energy and mining exports, making it vulnerable to fluctuations in commodity prices. Colombia is Latin America’s fourth largest oil producer and the world’s fourth largest coal producer, third largest coffee exporter, and second largest cut flowers exporter. Colombia’s economic development is hampered by inadequate infrastructure, poverty, narcotrafficking, and an uncertain security situation, in addition to dependence on primary commodities (goods that have little value-added from processing or labor inputs).

Colombia’s economy slowed in 2017 because of falling world market prices for oil and lower domestic oil production due to insurgent attacks on pipeline infrastructure. Although real GDP growth averaged 4.7% during the past decade, it fell to an estimated 1.8% in 2017. Declining oil prices also have contributed to reduced government revenues. In 2016, oil revenue dropped below 4% of the federal budget and likely remained below 4% in 2017. A Western credit rating agency in December 2017 downgraded Colombia’s sovereign credit rating to BBB-, because of weaker-than-expected growth and increasing external debt. Colombia has struggled to address local referendums against foreign investment, which have slowed its expansion, especially in the oil and mining sectors. Colombia’s FDI declined by 3% to $10.2 billion between January and September 2017.

Colombia has signed or is negotiating Free Trade Agreements (FTA) with more than a dozen countries; the US-Colombia FTA went into effect in May 2012. Colombia is a founding member of the Pacific Alliance—a regional trade block formed in 2012 by Chile, Colombia, Mexico, and Peru to promote regional trade and economic integration. The Colombian government took steps in 2017 to address several bilateral trade irritants with the US, including those on truck scrappage, distilled spirits, pharmaceuticals, ethanol imports, and labor rights. Colombia hopes to accede to the Organization for Economic Cooperation and Development.

GDP (purchasing power parity)$197.631 billion (2019 est.)

$197.525 billion (2018 est.)

$195.01 billion (2017 est.)

note: data are in 2010 dollars
$741.099 billion (2019 est.)

$717.7 billion (2018 est.)

$700.091 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate0.06% (2019 est.)

1.29% (2018 est.)

2.37% (2017 est.)
3.26% (2019 est.)

2.51% (2018 est.)

1.36% (2017 est.)
GDP - per capita (PPP)$11,375 (2019 est.)

$11,562 (2018 est.)

$11,618 (2017 est.)

note: data are in 2010 dollars
$14,722 (2019 est.)

$14,452 (2018 est.)

$14,314 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 6.7% (2017 est.)

industry: 32.9% (2017 est.)

services: 60.4% (2017 est.)
agriculture: 7.2% (2017 est.)

industry: 30.8% (2017 est.)

services: 62.1% (2017 est.)
Population below poverty line25% (2019 est.)35.7% (2019 est.)
Household income or consumption by percentage sharelowest 10%: 1.4%

highest 10%: 35.4% (2012 est.)

note: data are for urban households only
lowest 10%: 1.2%

highest 10%: 39.6% (2015 est.)
Inflation rate (consumer prices)0.2% (2019 est.)

-0.2% (2018 est.)

0.4% (2017 est.)
3.5% (2019 est.)

3.2% (2018 est.)

4.3% (2017 est.)
Labor force8.086 million (2017 est.)19.309 million (2020 est.)
Labor force - by occupationagriculture: 26.1%

industry: 18.4%

services: 55.5% (2017 est.)
agriculture: 17%

industry: 21%

services: 62% (2011 est.)
Unemployment rate5.71% (2019 est.)

5.26% (2018 est.)
10.5% (2019 est.)

9.68% (2018 est.)
Distribution of family income - Gini index45.4 (2018 est.)

48.5 (December 2017)

note: data are for urban households only
50.4 (2018 est.)

53.5 (2014)
Budgetrevenues: 33.43 billion (2017 est.)

expenditures: 38.08 billion (2017 est.)
revenues: 83.35 billion (2017 est.)

expenditures: 91.73 billion (2017 est.)
Industriespetroleum, food processing, textiles, wood products, chemicalstextiles, food processing, oil, clothing and footwear, beverages, chemicals, cement; gold, coal, emeralds
Industrial production growth rate-0.6% (2017 est.)

note: excludes oil refining
-2.2% (2017 est.)
Agriculture - productssugar cane, bananas, milk, oil palm fruit, maize, rice, plantains, poultry, cocoa, potatoessugar cane, milk, oil palm fruit, potatoes, rice, bananas, cassava leaves, plantains, poultry, maize
Exports$25.446 billion (2019 est.)

$24.183 billion (2018 est.)

$23.907 billion (2017 est.)
$61.697 billion (2019 est.)

$60.151 billion (2018 est.)

$59.644 billion (2017 est.)
Exports - commoditiescrude petroleum, crustaceans, bananas, fish, refined petroleum (2019)crude petroleum, coal, refined petroleum, coffee, gold (2019)
Exports - partnersUnited States 30%, China 13%, Panama 8%, Chile 7% (2019)United States 31%, China 11%, Panama 6%, Ecuador 5% (2019)
Imports$26.096 billion (2019 est.)

$25.677 billion (2018 est.)

$24.594 billion (2017 est.)
$87.072 billion (2019 est.)

$80.546 billion (2018 est.)

$76.136 billion (2017 est.)
Imports - commoditiesrefined petroleum, coal tar oil, cars, packaged medicines, soybean products (2019)refined petroleum, cars, broadcasting equipment, packaged medicines, corn (2019)
Imports - partnersUnited States 22%, China 18%, Colombia 9%, Panama 5% (2019)United States 27%, China 20%, Mexico 7%, Brazil 6% (2019)
Debt - external$50.667 billion (2019 est.)

$43.224 billion (2018 est.)
$135.644 billion (2019 est.)

$128.238 billion (2018 est.)
Exchange rates25,000 (2020 est.)

25,000 (2019 est.)

25,000 (2018 est.)

the US dollar became Ecuador's currency in 2001
Colombian pesos (COP) per US dollar -

3,457.93 (2020 est.)

3,416.5 (2019 est.)

3,147.43 (2018 est.)

2,001 (2014 est.)

2,001.1 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt45.4% of GDP (2017 est.)

43.2% of GDP (2016 est.)
49.4% of GDP (2017 est.)

49.8% of GDP (2016 est.)

note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities
Reserves of foreign exchange and gold$2.395 billion (31 December 2017 est.)

$4.259 billion (31 December 2016 est.)
$47.13 billion (31 December 2017 est.)

$46.18 billion (31 December 2016 est.)
Current Account Balance-$53 million (2019 est.)

-$1.328 billion (2018 est.)
-$13.748 billion (2019 est.)

-$13.118 billion (2018 est.)
GDP (official exchange rate)$107.436 billion (2019 est.)$323.255 billion (2019 est.)
Taxes and other revenues32% (of GDP) (2017 est.)26.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-4.5% (of GDP) (2017 est.)-2.7% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 8.8%

male: 6.9%

female: 12% (2019 est.)
total: 20%

male: 15.9%

female: 25.4% (2019 est.)
GDP - composition, by end usehousehold consumption: 60.7% (2017 est.)

government consumption: 14.4% (2017 est.)

investment in fixed capital: 24.3% (2017 est.)

investment in inventories: 1% (2017 est.)

exports of goods and services: 20.8% (2017 est.)

imports of goods and services: -21.3% (2017 est.)
household consumption: 68.2% (2017 est.)

government consumption: 14.8% (2017 est.)

investment in fixed capital: 22.2% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 14.6% (2017 est.)

imports of goods and services: -19.7% (2017 est.)
Gross national saving24.7% of GDP (2019 est.)

25.2% of GDP (2018 est.)

25.8% of GDP (2017 est.)
15.7% of GDP (2019 est.)

16.3% of GDP (2018 est.)

16.9% of GDP (2017 est.)

Source: CIA Factbook