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Ecuador vs. Peru

Economy

EcuadorPeru
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.

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

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
$417.69 billion (2019 est.)

$408.898 billion (2018 est.)

$393.259 billion (2017 est.)

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

1.29% (2018 est.)

2.37% (2017 est.)
2.18% (2019 est.)

3.97% (2018 est.)

2.48% (2017 est.)
GDP - per capita (PPP)$11,375 (2019 est.)

$11,562 (2018 est.)

$11,618 (2017 est.)

note: data are in 2010 dollars
$12,848 (2019 est.)

$12,782 (2018 est.)

$12,507 (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: 7.6% (2017 est.)

industry: 32.7% (2017 est.)

services: 59.9% (2017 est.)
Population below poverty line25% (2019 est.)20.2% (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%: 1.4%

highest 10%: 36.1% (2010 est.)
Inflation rate (consumer prices)0.2% (2019 est.)

-0.2% (2018 est.)

0.4% (2017 est.)
2.1% (2019 est.)

1.3% (2018 est.)

2.8% (2017 est.)

note: data are for metropolitan Lima, annual average
Labor force8.086 million (2017 est.)3.421 million (2020 est.)

note: individuals older than 14 years of age
Labor force - by occupationagriculture: 26.1%

industry: 18.4%

services: 55.5% (2017 est.)
agriculture: 25.8%

industry: 17.4%

services: 56.8% (2011)
Unemployment rate5.71% (2019 est.)

5.26% (2018 est.)
6.58% (2019 est.)

6.73% (2018 est.)

note: data are for metropolitan Lima; widespread underemployment
Distribution of family income - Gini index45.4 (2018 est.)

48.5 (December 2017)

note: data are for urban households only
42.8 (2018 est.)

51 (2005)
Budgetrevenues: 33.43 billion (2017 est.)

expenditures: 38.08 billion (2017 est.)
revenues: 58.06 billion (2017 est.)

expenditures: 64.81 billion (2017 est.)
Industriespetroleum, food processing, textiles, wood products, chemicalsmining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture
Industrial production growth rate-0.6% (2017 est.)

note: excludes oil refining
2.7% (2017 est.)
Agriculture - productssugar cane, bananas, milk, oil palm fruit, maize, rice, plantains, poultry, cocoa, potatoessugar cane, potatoes, rice, plantains, milk, poultry, maize, cassava, oil palm fruit, grapes
Exports$25.446 billion (2019 est.)

$24.183 billion (2018 est.)

$23.907 billion (2017 est.)
$55.583 billion (2019 est.)

$55.129 billion (2018 est.)

$53.823 billion (2017 est.)
Exports - commoditiescrude petroleum, crustaceans, bananas, fish, refined petroleum (2019)copper, gold, refined petroleum, zinc, fishmeal, tropical fruits, lead, iron, molybdenum (2019)
Exports - partnersUnited States 30%, China 13%, Panama 8%, Chile 7% (2019)China 29%, United States 12%, Canada 5%, South Korea 5%, Switzerland 5% (2019)
Imports$26.096 billion (2019 est.)

$25.677 billion (2018 est.)

$24.594 billion (2017 est.)
$48.211 billion (2019 est.)

$47.616 billion (2018 est.)

$46.15 billion (2017 est.)
Imports - commoditiesrefined petroleum, coal tar oil, cars, packaged medicines, soybean products (2019)refined petroleum, crude petroleum, cars, broadcasting equipment, delivery trucks (2019)
Imports - partnersUnited States 22%, China 18%, Colombia 9%, Panama 5% (2019)China 24%, United States 22%, Brazil 6% (2019)
Debt - external$50.667 billion (2019 est.)

$43.224 billion (2018 est.)
$81.333 billion (2019 est.)

$75.467 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
nuevo sol (PEN) per US dollar -

3.599 (2020 est.)

3.3799 (2019 est.)

3.366 (2018 est.)

3.185 (2014 est.)

2.8383 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt45.4% of GDP (2017 est.)

43.2% of GDP (2016 est.)
25.4% of GDP (2017 est.)

24.5% of GDP (2016 est.)

note: data cover general government debt, and includes debt instruments issued by government entities other than the treasury; the data exclude 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.)
$63.83 billion (31 December 2017 est.)

$61.81 billion (31 December 2016 est.)
Current Account Balance-$53 million (2019 est.)

-$1.328 billion (2018 est.)
-$3.531 billion (2019 est.)

-$3.821 billion (2018 est.)
GDP (official exchange rate)$107.436 billion (2019 est.)$230.707 billion (2019 est.)
Taxes and other revenues32% (of GDP) (2017 est.)27.1% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-4.5% (of GDP) (2017 est.)-3.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 8.8%

male: 6.9%

female: 12% (2019 est.)
total: 7.3%

male: 6.9%

female: 7.9% (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: 64.9% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: -0.2% (2017 est.)

exports of goods and services: 24% (2017 est.)

imports of goods and services: -22% (2017 est.)
Gross national saving24.7% of GDP (2019 est.)

25.2% of GDP (2018 est.)

25.8% of GDP (2017 est.)
19.8% of GDP (2018 est.)

19.7% of GDP (2017 est.)

19% of GDP (2015 est.)

Source: CIA Factbook