[citation needed]. Many tourists visit the Galapagos Islands (which were designated a UNESCO World Heritage site in 1978), but improvements to tourist facilities have increased the number of visitors to the mainland as well. percent of the GDP and absorbs 25 percent of the total labor force (1 The extreme poverty rate has declined significantly between 1999 and 2010.
erratic prices on the international market when compared to the more [60][61] The monthly unemployment rate remained at about 6 and 8 percent from December 2007 until September 2008, however, it went up to about 9 percent in October and dropped again in November 2008 to 8 percent. [76], The following table shows the main economic indicators in 19802019 (with IMF staff stimtates in 2020-2025). These factors highlighted the Government of Ecuador's unsustainable economic policy mix of large fiscal deficits and expansionary money policy and resulted in a 7.3% contraction of GDP, annual year-on-year inflation of 52.2%, and a 65% devaluation of the national currency in 1999. [33], In 2006, Ecuador had an annual production of about 5.3 tonnes of gold, being the 34th largest producer in the world at the time. [62], Between 2006 and 2009, the government increased spending on social welfare and education from 2.6% to 5.2% of its GDP. industrial sector is oriented toward primary commodities. stable demand for manufactured and For a long time, the economy depended largely on primary industries such as agriculture, petroleum, forestry, and aquaculture. The major airline is Sociedad Ecuatoriana de Transportes Aereos (SAETA), which flies internationally. (May 2012) P. 15. The currency decreased in value by some 70% in 1999 and, on the edge of hyperinflation, the MAHAUD government announced it would dollarize the economy. The Country is a middle-income developing economy that is dependent on agriculture and petroleum. In addition to much wider activities in processing agricultural, marine and forest products, there are modern textile, chemical, petrochemical, electronic, steel, shipbuilding and building-material industries. Twenty-one percent of the industry consists of shrimp processing; meat account for 18% while fish account for 16%. Rivers, particularly in the Guayas basin, also serve as transportation arteries. [65] In addition it claimed that $3.8bn in foreign debt negotiated by previous administrations was illegitimate because it was authorized without executive decree. The metal industry accounts for a small factor in Ecuadors economy although it remains as one of the countrys untapped resources. [37], Oil accounts for 40% of exports and contributes to maintaining a positive trade balance. All rights reserved. This double stroke of bad For a long time, Ecuador depended on imported consumer goods but the new millennium saw the country invest more in the FMCG industry. According to the government, the textile sector accounts for 50,000 direct jobs and about 300,000 indirectly. Travel Document Systems, Inc. (TDS) is a leading visa and passport processing agency. Those that did exist were engaged mainly in processing agricultural products and the manufacture of textiles, leather products and some consumer goods.
[73] Poverty rates were higher for indigenous peoples, Afro-descendants and rural areas, reaching 44% of the Native ancestry population. Find out what visa options are available for your nationality.Access requirements, application forms, and online ordering. However, the dependence on oil has left the country vulnerable to fluctuation in oil prices which ripples to other sectors causing an unstable economy. Please help update this article to reflect recent events or newly available information. The main highland centres are connected by asphalt roads, with asphalt or cobblestone secondary roads to regional market towns. Not only did the country have to contend with natural disasters, but a sharp decline in world petroleum prices drove Ecuadors economy into free fall in 1999. The industry sector is concentrated in urban centers, about 70% of the manufacturing and non-oil sectors are concentrated in Quito and Guayaquil. Noticias Espaa Los titulares de hoy, El Banco Central de Ecuador sita el crecimiento del 2008 en ms del 6%, Banco Central del Ecuador Resumen de pib, Ecuador Inflation rate (consumer prices) Economy, Ecuadorian Inflation Accelerated to Three-Year High in 2011, Amrica Latina y el Caribe Ecuador Datos destacados, "Ecuador and IMF Reach Staff-Level Agreement on a US$4.2 Billion Extended Fund Facility", New Paper Examines Ecuador's Success in Emerging from Economic Recession; Reducing Poverty and Unemployment | Press Releases, "Ecuador incentivar 14 sectores econmicos", "China draws fire on mega loan to Ecuador", "Ecuador to export energy to Colombia and Peru through El Inga electrical substation", "Report for Selected Countries and Subjects", World Bank Summary Trade Statistics Ecuador, Initiative for Infrastructure Integration of South America, https://en.wikipedia.org/w/index.php?title=Economy_of_Ecuador&oldid=1078120706, World Trade Organization member economies, All Wikipedia articles written in American English, Short description is different from Wikidata, Articles with unsourced statements from August 2012, Wikipedia articles in need of updating from May 2020, All Wikipedia articles in need of updating, Articles with unsourced statements from May 2020, All Wikipedia articles needing clarification, Wikipedia articles needing clarification from August 2012, Articles containing potentially dated statements from 2012, All articles containing potentially dated statements, Creative Commons Attribution-ShareAlike License 3.0, petroleum, food processing, textiles, wood products, chemicals, industrial materials, fuels and lubricants, nondurable consumer goods, Tariffs applied by Ecuador as provided by ITC's, This page was last edited on 20 March 2022, at 00:02.
[66] Following Venezuela's acceptance in 2012 to full membership in the South American customs union, Mercosur (Mercado Comn del Sur or Common Market of the South), the leftist governments in Bolivia and Ecuador applied to move from observer status to full membership in the trade bloc originally composed of Argentina, Brazil, Paraguay, and Uruguay.
Small quantities of gold, silver, copper and zinc are produced. Numerous regional bus companies provide cheap, frequent, and far-ranging rural transport. Deteriorating economic performance in 199798 culminated in a severe financial crisis in 1999. Ecuador's national language is Spanish, but several Amerindian languages are also used. Constitutional conventions became a common feature of Ecuadors political system in an effort to eliminate the instability of the period from the mid-1990s to the early 21st century, when many individuals served as president and none completed a four-year term. the 1970s, Ecuador exports 60 percent of the oil it produces, most of The precarious structure of Ecuador's industrial sector Under the administration of Lucio GUTIERREZ January 2003 to April 2005 Ecuador gained benefits from higher world petroleum prices. [66] Additional loans from China and the World Bank to help ease the government's balance-of-payments needs were considered. Buoyed by higher oil prices, the Ecuadorian economy experienced a modest recovery in 200001, with GDP rising 2.3% in 2000 and 5.4% in 2001. Many rural centres are still served only by unsurfaced roads, impassable during wet periods; roads to the east of the Andes are also relatively poor.
Sign Up to Get Our Twice Monthly Travel Newsletter, Travel Tuesday Special Deals, The economy became dollarized in 2000, and consequentially the industry experienced a sudden boom that is yet to subside to date. The processed food industry is the largest non-oil industry in Ecuador. The Noboa government confirmed its commitment to convert to the dollar as the centerpiece of its economic recovery strategy, successfully completing the transition from sucres to dollars in 2001. [45] This circumstance was due to the fact that imports grew faster than exports. Widespread use of subcontracted labour (whereby companies do not directly employ workers) proliferated in many industries, especially on plantations; however, legislation passed in 2006 limits the percentage of subcontracted workers a company can employ and enables these workers rights to freedom of association, to bargain collectively, and to legal protection against antiunion discrimination. [59] The surrounding water, mountains and volcano make for some breath-taking scenery. US State Department Travel Alerts, and more! Subsequent protest led to the 2000 Ecuadorean coup d'tat which saw Mahuad's removal from office and the elevation of Vice President Gustavo Noboa to the presidency.
The main oil exports from the country are the heavy crude (Napo) and medium-heavy crude (Oriento). Ecuadors telephone systems are state owned; most Ecuadorans use cellular phones. [66] The Correa government also asked China for an additional $7.5 billion in financing in early 2015 as crude oil pricesthe nation's biggest exportweakened further. The Republic of Ecuador is located in South America.
Between 2010 and 2015 the production grew by 37% while the domestic market grew by 45%. Real GDP contracted by more than 6%, with the shortage worsening significantly. [58] GDP doubled between 1999 and 2007, reaching 65,490 million dollars according to BCE. [66] In response, the U.S. Office of Foreign Disaster Assistance provided more than $3 million in assistance, including provisions airlifted in for 50,000 people in the earthquake-prone region and assistance with water and sanitation systems in affected areas. [19], In the past, Ecuador's economy depended largely on primary industries like agriculture, petroleum, and aquaculture. Untapped oil reserves belong to the government by authority of the of the state. [21] The total trade amounted to 98% of the Ecuador's GDP in 2017. Travel Document Systems can now expedite U.S. Passport Renewals. The aim was to increase the private sector's weight, in particular the oil industry. This is even more the case for the rail line from Quito to San Lorenzo on the coast via Ibarra. [42] Pines and cedars are planted in the region of the Sierra, walnuts and rosemary, and balsa wood, on Guayas River Basin. The more likely reason for slow development, however, has been cost. The service sector contributes 56.14% of the GDP, Industry 33.43% and manufacturing 16.33%. [66] President Correa's plans to begin extracting crude oil from the Ishpingo, Tambochoa, and Tiputini field in Yasun National Park in the Amazon to provide an economic boost did not salvage the economy from going into recession. Since 2007, the textile export has been increasing at a rate of 30.5% annually. The industrial sector's main problem is the deficit of energy,[74] which the current government has tackled with the improvement of performance on existing hydro plants, and the creation of new ones.
It was these Texans who saw fit to name the area after 'Sour Lake' in Texas and the name has since stuck.
According to the U.S. Energy Information Administration, Ecuador was the third largest source of foreign oil to the western United States in 2014.
It was colonized by the Spanish in the 16th century before achieving independence as one of the states of the Gran Colombia in 1820. In Quito the Telefriqo (cable car) glides to the top of a 13,000-foot (4,000-metre) mountain, and Ecuadors most-visited landmark, Mitad del Mundo (Middle of the Earth), a monument and museum at the Equator, has undergone many renovations. Oil accounts for approximately fifty percent of exported goods and a third of the countrys tax revenue. Imports come mainly from the United States, China, Colombia, Panama, and Brazil. The industry also consists of other minor services such as beverage processing and packaging, sugar processing, and sugar and cereal industries. [66], Ecuador's access to global financial markets also had been limited by its 2008 default on $3.2 billion in debt to global lenders. The president and vice president are elected by popular vote and serve four-year terms. About one-tenth of the workforce is formally organized, but the proportion of employees who maintain membership in a labour union is much higher.