Ecuador Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$182.24 billion (2020 est.)

$197.55 billion (2019 est.)

$197.53 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

0.06% (2019 est.)

1.29% (2018 est.)

2.37% (2017 est.)

Real GDP per capita

$10,300 (2020 est.)

$11,400 (2019 est.)

$11,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$107.436 billion (2019 est.)

Inflation rate (consumer prices)

0.2% (2019 est.)

-0.2% (2018 est.)

0.4% (2017 est.)

Credit ratings

Fitch rating: B- (2020)

Moody's rating: Caa3 (2020)

Standard & Poors rating: B- (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 6.7% (2017 est.)

industry: 32.9% (2017 est.)

services: 60.4% (2017 est.)

GDP - composition, by end use

household 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.)

Agricultural products

sugar cane, bananas, milk, oil palm fruit, maize, rice, plantains, poultry, cocoa, potatoes

Industries

petroleum, food processing, textiles, wood products, chemicals

Industrial production growth rate

-0.6% (2017 est.)

note: excludes oil refining

Labor force

8.086 million (2017 est.)

Labor force - by occupation

agriculture: 26.1%

industry: 18.4%

services: 55.5% (2017 est.)

Unemployment rate

5.71% (2019 est.)

5.26% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 9%

male: 6.9%

female: 12.9% (2021 est.)

Population below poverty line

25% (2019 est.)

Gini Index coefficient - distribution of family income

45.4 (2018 est.)

48.5 (December 2017)

note: data are for urban households only

Household income or consumption by percentage share

lowest 10%: 1.4%

highest 10%: 35.4% (2012 est.)

note: data are for urban households only

Budget

revenues: 33.43 billion (2017 est.)

expenditures: 38.08 billion (2017 est.)

Budget surplus (+) or deficit (-)

-4.5% (of GDP) (2017 est.)

Public debt

45.4% of GDP (2017 est.)

43.2% of GDP (2016 est.)

Taxes and other revenues

32% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$53 million (2019 est.)

-$1.328 billion (2018 est.)

Exports

$22.23 billion (2020 est.) note: data are in current year dollars

$26.12 billion (2019 est.) note: data are in current year dollars

$25.38 billion (2018 est.) note: data are in current year dollars

Exports - partners

United States 30%, China 13%, Panama 8%, Chile 7% (2019)

Exports - commodities

crude petroleum, crustaceans, bananas, fish, refined petroleum (2019)

Imports

$19.89 billion (2020 est.) note: data are in current year dollars

$25.89 billion (2019 est.) note: data are in current year dollars

$26.29 billion (2018 est.) note: data are in current year dollars

Imports - partners

United States 22%, China 18%, Colombia 9%, Panama 5% (2019)

Imports - commodities

refined petroleum, coal tar oil, cars, packaged medicines, soybean products (2019)

Reserves of foreign exchange and gold

$2.395 billion (31 December 2017 est.)

$4.259 billion (31 December 2016 est.)

Debt - external

$50.667 billion (2019 est.)

$43.224 billion (2018 est.)

Exchange rates

25,000 (2020 est.)

25,000 (2019 est.)

25,000 (2018 est.)

the US dollar became Ecuador's currency in 2001

NOTE: The information regarding Ecuador on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Ecuador 2022 information contained here. All suggestions for corrections of any errors about Ecuador 2022 should be addressed to the CIA or the source cited on each page.