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The Ecuadorian Economy
OVERVIEW
To a considerable extent, Ecuador is dependent
on its petroleum resources which have accounted
for more than half of the country’s export earn-
ings and one-fourth of public sector revenues in
recent years.
From 1999 to 2000, Ecuador suffered a severe
economic crisis, with GDP reducing by more
than 6%. Poverty increased significantly and the
banking system collapsed and as a result Ecua-
dor defaulted on its external debt later that year.
In March 2000, Congress approved a series of
structural reforms that also implemented the use
of the US dollar as legal tender. Dollarization
stabilized the economy and helped it to grow, al-
though this had also been facilitated by high oil
prices, remittances, and increased non-traditional
exports. From 2002-06 the economy grew 5.5%,
the highest five-year average in 25 years. The
poverty rate declined during this period but re-
mained high at 38% in 2006.
After moderate growth in 2007, the economy
reached a growth rate of 6.5% in 2008, mainly
due to high global petroleum prices. Poverty lev-
els declined to about 35% by the end of 2008.
Economic Activity By Regions
GDP (growth, GDP by activity and by expense)
Source: Economic and Commercial Bureau of Spain
Economic activity is mainly centralised in the cit-
ies of Quito and Guayaquil. The central govern-
ment is based in Quito, as a result, most of the
country’s leading companies are based there as
well as being the home of international compa-
nies and public institutions offices.
Guayaquil is also of great significance because
of its coastal location. As a port, many of the key
agricultural exports leave from this city such as
bananas, cocoa and shrimp.
However, aside from the two major cities, there
are also important economic hubs throughout all
regions . Cuenca, the third largest city, concen-
trates on the craft and ceramic industry whilst
Manta is considered the world capital of tuna.
Most of the important oil extraction points and
refineries are in the Esmeraldas / The Amazon
Rainforest. Then, in terms of the tourism indus-
try, the Galapagos islands are the important eco-
nomic location.
Agriculture, livestock and fishing
Mines and quarries
Manufacturing industry
Electricity and water supply
Construction
Wholesome and Retail trade
Transport and storage
Financial intermediation
Other service sectors
(hotels, restaurants and education)
Civil service
Other services
10.3
10.5
10.6
10.5
10.4
13.8
12.6
11.1
10.0
12.2
13.3
13.7
14.0
14.2
15.6
0.8
0.8
0.9
1.0
0.9
8.7
8.6
8.4
9.0
9.3
14.4
14.6
14.7
14.7
14.5
7.3
7.4
7.4
7.3
7.4
1.8
2.0
2.2
2.3
2.2
15.3
15.6
16.1
16.2
16.0
4.5
4.5
4.6
5.0
5.1
9.8
9.7
10.0
9.8
6.4
100
100
100
100
100
GDP by sector and expense
Sector
2005
2006
2007
2008
2009
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