The Economy Of Ecuador. Detailed description of the current state of the economy of Ecuador briefly

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The Economy Of Ecuador. Detailed description of the current state of the economy of Ecuador briefly

Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and approximately two-fifths of public sector revenues in recent years. In 1999/2000, Ecuador's economy suffered from a banking crisis, with GDP contracting by 5.3% and poverty increasing significantly. In March 2000, the 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 an average of 4.3% per year, the highest five-year average in 25 years. After moderate growth in 2007, the economy reached a growth rate of 6.4% in 2008, buoyed by high global petroleum prices and increased public sector investment. President Rafael CORREA Delgado, who took office in January 2007, defaulted in December 2008 on Ecuador's sovereign debt, which, with a total face value of approximately US$3.2 billion, represented about 30% of Ecuador's public external debt. In May 2009, Ecuador bought back 91% of its "defaulted" bonds via an international reverse auction. Economic policies under the CORREA administration - for example, an announcement in late 2009 of its intention to terminate 13 bilateral investment treaties, including one with the United States - have generated economic uncertainty and discouraged private investment. China has become Ecuador's largest foreign lender since Quito defaulted in 2008, allowing the government to maintain a high rate of social spending; Ecuador contracted with the Chinese government for more than $9.9 billion in forward oil sales, project financing, and budget support loans as of December 2013. Foreign investment levels in Ecuador continue to be the lowest in the region as a result of an unstable regulatory environment, weak rule of law, and the crowding-out effect of public investments. In 2013, oil output marginally reversed a declining trend and production is expected to increase slightly in 2014, although prices will likely remain lower than in previous years. Faced with a 2013 trade deficit of $1.1 billion, Ecuador erected technical barriers to trade in December 2013, causing tensions with its largest trading partners. Ecuador also decriminalized intellectual property rights violations in February 2014. Furthermore, the CORREA administration is considering de-dollarizing the economy to allow the government to use monetary policy tools to stabilize growth.

GDP (purchasing power parity):

$182 billion (2014 est.)

$175 billion (2013 est.)

$167.4 billion (2012 est.)

note: data are in 2014 US dollars

country comparison to the world: 64

GDP (official exchange rate):

$100.5 billion (2014 est.)

GDP - real growth rate:

4% (2014 est.)

4.5% (2013 est.)

5.1% (2012 est.)

country comparison to the world: 72

GDP - per capita (PPP):

$11,400 (2014 est.)

$11,100 (2013 est.)

$10,800 (2012 est.)

note: data are in 2013 US dollars

country comparison to the world: 123

Gross national saving:

27.7% of GDP (2014 est.)

27.3% of GDP (2013 est.)

27.9% of GDP (2012 est.)

country comparison to the world: 37

GDP - composition, by end use:

household consumption: 60.2%

government consumption: 14.1%

investment in fixed capital: 27.4%

investment in inventories: 0.1%

exports of goods and services: 29.9%

imports of goods and services: -31.6%

(2014 est.)

GDP - composition, by sector of origin:

agriculture: 6%

industry: 34.4%

services: 59.6% (2014 est.)

Agriculture - products:

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

Industries:

petroleum, food processing, textiles, wood products, chemicals

Industrial production growth rate:

4%

note: excludes oil refining (2014 est.)

country comparison to the world: 73

Labor force:

7.214 million (2014 est.)

country comparison to the world: 65

Labor force - by occupation:

agriculture: 27.8%

industry: 17.8%

services: 54.4% (2012)

Unemployment rate:

5% (2014 est.)

4.7% (2013 est.)

country comparison to the world: 50

Population below poverty line:

25.6% (December 2013 est.)

Household income or consumption by percentage share:

lowest 10%: 1.4%

highest 10%: 35.4%

note: data for urban households only (2010 est.)

Distribution of family income - Gini index:

48.5 (December 2013)

50.5 (December 2010)

note: data are for urban households

country comparison to the world: 23

Budget:

revenues: $39.5 billion

expenditures: $44.7 billion (2014 est.)

Taxes and other revenues:

39.3% of GDP (2014 est.)

country comparison to the world: 41

Budget surplus (+) or deficit (-):

-5.2% of GDP (2014 est.)

country comparison to the world: 170

Public debt:

30% of GDP (2014 est.)

23.1% of GDP (2013 est.)

country comparison to the world: 127

Fiscal year:

calendar year

Inflation rate (consumer prices):

3.9% (2014 est.)

2.7% (2013 est.)

Central bank discount rate:

8.17% (31 December 2011)

8.68% (31 December 2010)

country comparison to the world: 35

Commercial bank prime lending rate:

8.5% (31 December 2014 est.)

8.17% (31 December 2013 est.)

country comparison to the world: 108

Stock of narrow money:

$10.81 billion (31 December 2014 est.)

$9.274 billion (31 December 2013 est.)

country comparison to the world: 79

Stock of broad money:

$34.53 billion (31 December 2014 est.)

$28.44 billion (31 December 2013 est.)

country comparison to the world: 74

Stock of domestic credit:

$34.1 billion (31 December 2014 est.)

$28.01 billion (31 December 2013 est.)

country comparison to the world: 71

Market value of publicly traded shares:

$5.911 billion (31 December 2012 est.)

$5.779 billion (31 December 2011)

$5.263 billion (31 December 2010 est.)

country comparison to the world: 85

Current account balance:

$613.4 million (2014 est.)

-$1.29 billion (2013 est.)

country comparison to the world: 53

Exports:

$27.33 billion (2014 est.)

$25.69 billion (2013 est.)

country comparison to the world: 69

Exports - commodities:

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

Exports - partners:

US 44.6%, Chile 9.9%, Peru 7.5% (2013)

Imports:

$26.4 billion (2014 est.)

$26.33 billion (2013 est.)

country comparison to the world: 71

Imports - commodities:

industrial materials, fuels and lubricants, nondurable consumer goods

Imports - partners:

US 29.1%, China 12.9%, Colombia 8.5%, Panama 6.8%, Peru 4.1% (2013)

Reserves of foreign exchange and gold:

$6.811 billion (31 December 2014 est.)

$4.352 billion (31 December 2013 est.)

country comparison to the world: 87

Debt - external:

$21.74 billion (31 December 2014 est.)

$19.23 billion (31 December 2013 est.)

country comparison to the world: 83

Stock of direct foreign investment - at home:

$14.28 billion (31 December 2014 est.)

$13.68 billion (31 December 2013 est.)

country comparison to the world: 85

Stock of direct foreign investment - abroad:

$6.33 billion (31 December 2012 est.)

$6.33 billion (31 December 2011 est.)

country comparison to the world: 63

Exchange rates:

the US dollar became Ecuador's currency in 2001