Economy overview: Ecuador has significant oil reserves and fertile land, the main export products are oil, bananas and shrimp, changes in prices on world markets can have significant consequences for the country. Ecuador joined the WTO in 1996, but failed to meet many of its commitments. Growth in recent years has been uneven due to poorly thought-out measures to streamline taxes. The consequences of El Niño and the decline in oil demand in 1997-98. caused a recession in 1999. In early 1999, the banking sector collapsed, which precipitated an unprecedented default that year. Continued economic instability led to a 70% depreciation of the currency during 1999, which eventually forced the desperate government to resort to dollarization of the currency in 2000. This measure led to the stabilization of the currency, but did not prevent the removal of the government. The new president, Gustavo NOBOA, should finish negotiations with the IMF to conclude long-term agreements. It will not be easy for him to pass reforms that could provide positive changes from the transition to the dollar in the long run. See cheeroutdoor.com to know more about Ecuador Business. GDP: at purchasing power parity – $37.2 billion (2000 est.). Real GDP growth rate: 0.8% (2000 est.). GDP per capita: at purchasing power parity – $2,900 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 14%; industry: 36%; services: 50% (1999 est.). Proportion of population below the poverty line: 50% (1999 est.). Percentage distribution of family income or consumption: per 10% of the poorest families: 2.2%; by the top 10% of families: 33.8% (1999). Inflation rate at consumer prices: 96% (2000 est.). Labor force: 4.2 million people Employment structure: agriculture 30%, industry 25%, services 45% (1999 est.). Unemployment rate: 13% with widespread part-time employment (2000 est.). Budget: revenues: planned $5.1 billion (without possible profit from privatization); expenditures: $5.1 billion, including capital investments – no data (1999). Spheres of economy: oil, food, textile, metalworking, paper, woodworking, chemical industry, plastics production, fishing, timber industry. Growth in industrial production: 2.4% (1997 est.). Electricity generation: 10.065 billion kWh (1999) Sources of electricity generation: fossil fuels: 29.51%; hydropower: 70.49%; nuclear fuel: 0%; others: 0% (1999). Electricity consumption: 9.386 mpdkWh (1999). Electricity export: 0 kWh (1999). Electricity import: 25 million kWh (1999). Agricultural products: bananas, coffee, cocoa, rice, potatoes, cassava (tapioca), sugarcane; cattle, sheep, pigs, beef, pork, dairy products; balsa; fish, shrimp. Export: $5.6 billion (free on board, 2000) Exports: oil, bananas, shrimp, coffee, cocoa, cut flowers, fish. Export partners: USA 37%, Colombia 5%, Italy 5%, Chile 5%, Peru 4% (1999). Import: $3.4 billion (free on board, 2000). Import articles: machinery and equipment, raw materials, fuel; consumer goods. Import partners: USA 30%, Colombia 13%, Venezuela 6%, Japan 5%, Mexico 3% (1998). External debt: $15 billion (1999) Economic aid recipient: $695.7 million (1995) Economic aid donor: Currency: US dollar. Currency code: USD. Exchange rate: sucre for 1 USD – 25,000 (January 2001), 24,988.4 (2000), 11,786.8 (1999), 5,446.6 (1998), 3,988.3 (1997), 3,189.5 (1996) ); note: on January 7, 2000, the government promulgated a decree on the transition to the dollar in monetary circulation; On March 13, 2000, the National Congress approved a new monetary system, under which the US dollar became the main legal means of payment; On March 20, 2000, the Central Bank of Ecuador began exchanging sucres for dollars at a fixed rate of 20,000 sucres to US$1; since April 30, 2000 all financial transactions are denominated in dollars. Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 899,000 (1997). Mobile Cell Phones: 160,061 (1997). Telephone system: internal: services are generally unsatisfactory and unreliable; international: satellite earth station 1 Intelsat (Atlantic Ocean). Broadcast stations: AM – 392, FM – 27, shortwave -29 (1998). Radio receivers: 4.15 million (1997) Television broadcast stations: 15 (including 1 station in the Galapagos Islands) (1997). Televisions: 1.55 million (1997) Internet country code: ec Internet service providers: 13 (2000). Number of users: 20,000 (2000).
Transport
Transport Railways: total: 965 km (single track); narrow gauge: 965 km (1.067 m gauge) (2000). Roads: total: 43,197 km; coated: 8,165 km; unpaved: 35,032 km (1999 est.) Waterways: 1,500 km. Pipelines: for crude oil – 800 km; for oil products – 1,358 km. Ports and harbors: Guayaquil, Libertad, Manta, Puerto Bolívar, San Lorenzo, Esmeraldas. Merchant navy: in total: 30 ships (of 1,000 tons displacement or more) with a total displacement of 233,312 gross register tons / 385,784 long tons of gross tonnage; different types of ships: cargo ships – 2, chemical tankers – 1, liquefied gas tankers – 1, passenger ships – 3, oil tankers – 22, specialized tankers – 1 (2000 est.). Airports: 180 (2000 est.). Airports with paved runways: total: 59; over 3,047 m: 2; from 2438 to 3047 m:5; from 1,524 to 2,437 m: 18; from 914 to 1523 m:15; less than 914 m: 19 (2000 est.). Airports with unpaved runways: total: 121; from 914 to 1523 m: 32; less than 914 m: 89 (2000 est.). Helipads: 1 (2000 est.).
Armed forces
Branches of the Armed Forces: Army, Navy (including Marines), Air Force, National Police. Enlistment age: 20 years old. Total Military Manpower: Male 15 to 49: 3,382,567 (2001 est.). Eligible for military service: men aged 15 to 49: 2,280,899 (2001 est.). Number of persons reaching military age each year: male: 132,978 (2001 est.). Military spending in dollar terms: $720 million (1998) Military spending as part of GDP: 3.4% (1998).
International Issues
International issues International disputes: no. Illicit drugs: important transit point for cocaine and coca derivatives from Colombia and Peru; importer of chemical products used in the production of illegal drugs; large-scale money laundering; on the northern borders, drug trafficking groups and Colombian rebels are on the rise.
