Ecuador Economy 2008

Economy - overview:
Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and one-fourth of public sector revenues in recent years. In the late 1990s, Ecuador suffered its worst economic crisis, with natural disasters and sharp declines in world petroleum prices driving Ecuador's economy into free fall in 1999. Real GDP contracted by more than 6%, with poverty worsening significantly. The banking system also collapsed, and Ecuador defaulted on its external debt later that year. In March 2000, with inflation rising at an annual rate of 80%, Congress approved a series of structural reforms that also provided the framework for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and positive growth returned in the years that followed. However, the government of Alfredo PALACIO (2005-07) reversed economic reforms that reduced Ecuador's vulnerability to petroleum price swings and financial crises, and in 2006, seized the assets of Occidental petroleum for alleged contract violations and increased taxes on other foreign oil companies. PALACIO's successor and former Economy Minister, Rafael CORREA, has repeatedly raised the specter of another debt default, rejected a partially negotiated free trade agreement with the US, and decreed additional tax hikes on private oil companies. Consequently, foreign direct investment remains below 2001-04 levels, and economic growth has slowed significantly.

GDP (purchasing power parity):
$98.28 billion (2007 est.)

GDP (official exchange rate):
$43.76 billion (2007 est.)

GDP - real growth rate:
1.8% (2007 est.)

GDP - per capita (PPP):
$7,100 (2007 est.)

GDP - composition by sector:
agriculture: 10%
industry: 35%
services: 54% (2007 est.)

Labor force:
4.55 million (urban) (2007 est.)

Labor force - by occupation:
agriculture: 8%
industry: 24%
services: 68% (2001)

Unemployment rate:
9.8% (2007 est.)

Population below poverty line:
38.3% (2006)

Household income or consumption by percentage share:
lowest 10%: 2%
highest 10%: 35%
note: data for urban households only (October 2006)

Distribution of family income - Gini index:
46
note: data are for urban households (2006)

Inflation rate (consumer prices):
2.2% (2007 est.)

Investment (gross fixed):
26.4% of GDP (2007 est.)

Budget:
revenues: $13.1 billion
expenditures: planned $11.3 billion (2007 est.)

Public debt:
30.4% of GDP (2007 est.)

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

Industries:
petroleum, food processing, textiles, wood products, chemicals

Industrial production growth rate:
1.4% (2007 est.)

Electricity - production:
12.94 billion kWh (2005)

Electricity - consumption:
8.855 billion kWh (2005)

Electricity - exports:
16 million kWh (2005)

Electricity - imports:
1.723 billion kWh (2005)

Oil - production:
532,700 bbl/day (2005 est.)

Oil - consumption:
155,000 bbl/day (2005 est.)

Oil - exports:
420,600 bbl/day (2004 est.)

Oil - imports:
44,680 bbl/day (2004)

Oil - proved reserves:
4.63 billion bbl (1 January 2006 est.)

natural gas - production:
249.4 million cu m (2005 est.)

natural gas - consumption:
249.4 million cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
9.369 billion cu m (1 January 2006 est.)

Current account balance:
-$600 million (2007 est.)

Exports:
$13.3 billion (2007 est.)

Exports - commodities:
petroleum, bananas, cut flowers, shrimp

Exports - partners:
US 53.6%, Peru 8.2%, Colombia 5.6%, Chile 4.4% (2006)

Imports:
$13 billion (2007 est.)

Imports - partners:
US 23.1%, Colombia 13.3%, Brazil 7.3%, Panama 4% (2006)

Economic aid - recipient:
$209.5 million (2005)

Reserves of foreign exchange and gold:
$3.618 billion (30 November 2007 est.)

Debt - external:
$17.56 billion (31 October 2007)

Stock of direct foreign investment - at home:
$14.67 billion (2006 est.)

Stock of direct foreign investment - abroad:
$8.442 billion (2006 est.)

Market value of publicly traded shares:
$4.04 billion (2006)

Currency (code):
US dollar (USD)

Exchange rates:
1 the US dollar is used; the sucre was eliminated in 2000