Ecuador Economy Profile 2002

Economy - overview

Ecuador has substantial oil resources and rich agricultural areas. Because the country exports primary products such as oil, bananas, and shrimp, fluctuations in world market prices can have a substantial domestic impact. Ecuador joined the World Trade Organization in 1996, but has failed to comply with many of its accession commitments. The aftermath of El Nino and depressed oil market of 1997-98 drove Ecuador's economy into a free-fall in 1999. The beginning of 1999 saw the banking sector collapse, which helped precipitate an unprecedented default on external loans later that year. Continued economic instability drove a 70% depreciation of the currency throughout 1999, which forced a desperate government to "dollarize" the currency regime in 2000. The move stabilized the currency, but did not stave off the ouster of the government. Gustavo NOBOA, who assumed the presidency in January 2000, has managed to pass substantial economic reforms and mend relations with international financial institutions. Ecuador completed its first standby agreement since 1986 when the IMF Board approved a 10 December 2001 disbursement of $96 million, the final installment of a $300 million standby credit agreement.

GDP (purchasing power parity)

purchasing power parity - $39.6 billion (2001 est.)

GDP - real growth rate

4.3% (2001 est.)

GDP - per capita (PPP)

purchasing power parity - $3,000 (2001 est.)

GDP - composition by sector

agriculture: 11%
industry: 25%
services: 64% (2000 est.)

Population below poverty line

70% (2001 est.)

Household income or consumption by percentage share

lowest 10%: 2%
highest 10%: 34% (1995) (1995)

Inflation rate (consumer prices)

22% (2001 est.)

Labor force

3.7 million (urban)

Labor force - by occupation

agriculture 30%, industry 25%, services 45% (2001 est.)

Unemployment rate

14%; note - widespread underemployment (2001 est.)

Distribution of family income - Gini index

44 (1995)

Budget

revenues: $5.6 billion
expenditures: planned $5.6 billion, including capital expenditures of $NA (2001 est.)

Industries

petroleum, food processing, textiles, metal work, paper products, wood products, chemicals, plastics, fishing, lumber

Industrial production growth rate

5.1% (2001 est.)

Electricity - production

10.395 billion kWh (2000)

Electricity - production by source

fossil fuel: 25%
hydro: 75%
nuclear: 0%
other: 0% (2000)

Electricity - consumption

9.667 billion kWh (2000)

Electricity - exports

0 kWh (2000)

Electricity - imports

0 kWh (2000)

Agriculture - products

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

Exports

$4.8 billion (2001 est.)

Exports - commodities

petroleum, bananas, shrimp, coffee, cocoa, cut flowers, fish

Exports - partners

US 38%, Peru 6%, Chile 5%, Colombia 5%, Italy 3% (2000)

Imports

$4.8 billion (2001 est.)

Imports - commodities

machinery and equipment, chemicals, raw materials, fuels; consumer goods

Imports - partners

US 25%, Colombia 13%, Japan 8%, Venezuela 8%, Brazil 4% (2000)

Debt - external

$14 billion (2001) (2001)

Economic aid - recipient

$120 million (2001) (2001)

Currency

US dollar (USD)

Currency (code)

USD

Exchange rates

sucres per US dollar - 25,000.0 (January 2002), 25,000.0 (2001), 24,988.4 (2000), 11,786.8 (1999), 5,446.6 (1998), 3,988.3 (1997)
note: on 13 March 2000, the National Congress approved a new exchange system whereby the US dollar was adopted as the main legal tender in Ecuador for all purposes; on 20 March 2000, the Central Bank of Ecuador started to exchange sucres for US dollars at a fixed rate of 25,000 sucres per US dollar; since 30 April 2000, all transactions are denominated in US dollars

Fiscal year

calendar year