Economy of Ecuador- statistics & facts
With a Gross Domestic Product (GDP) of around 121.6 billion U.S. dollars, Ecuador ranks as the 8th largest economy in Latin America. Despite that, when accounting for population, it drops well below the region's average. The GDP per capita was almost 3,500 U.S. dollars lower than the median. The economic outlook also doesn’t look that favorable for Ecuador, as the growth rate of real GDP is expected to be lower than 0.1 percent in 2024. The economy has been negatively affected by the current wave of violence and political instability society is facing.
The production of oil has been an important part of economic growth; even though Ecuador does not compete with the levels of production of the largest producers, proved crude oil reserves surpassed 8.3 billion barrels as of 2023. In fact, Ecuador was twice a member of the Organization of the Petroleum Exporting Countries (OPEC) during two different periods -- first from 1973 to 1992, and then between 2007 and 2020. Ecuador departed OPEC in 2020 due to the need for fiscal sustainability. From 2020, the oil production of the country dropped by more than 50,000 barrels per day, which subsequently began an increase in the average price of crude oil from Ecuador.
Partially due to the working conditions, the social unrest, and political instability that the country is currently facing, the level of people living under poverty conditions is one of the highest in Latin America. In fact, poverty affects more than one out of every four inhabitants of the South American country, and almost ten percent were under extreme poverty conditions.
An economy sustained by the tertiary sector
The economic growth of Ecuador has been sustained by the strengthening of the tertiary sector. Which has been gaining ground against both agricultural and industrial sectors over the last few decades. As of 2022, services had a participation of over 53 percent of the Gross Domestic Product (GDP) of Ecuador, around five percentage points higher than in 2012. Nevertheless, the agricultural sector is still growing, the added value of the sector to the GDP increased by almost 38 percent in the last decade. Products such as fish, fruits, and vegetables ranked in the top three most exported products, only surpassed by oil and related products.The production of oil has been an important part of economic growth; even though Ecuador does not compete with the levels of production of the largest producers, proved crude oil reserves surpassed 8.3 billion barrels as of 2023. In fact, Ecuador was twice a member of the Organization of the Petroleum Exporting Countries (OPEC) during two different periods -- first from 1973 to 1992, and then between 2007 and 2020. Ecuador departed OPEC in 2020 due to the need for fiscal sustainability. From 2020, the oil production of the country dropped by more than 50,000 barrels per day, which subsequently began an increase in the average price of crude oil from Ecuador.
Employment and poverty
Ecuador ranks as the second lowest unemployment rate in Latin America, only behind Mexico. Around 3.6 percent of people available and willing to work have not been able to find a job. Nonetheless, the conditions of employment are not as good as they could be for Ecuadorian employees. In fact, during May 2024, the number of people considered sub employed increased to 1.94 million, considerably the highest figure of the last year. In total, 8.41 were employed in Ecuador but more than 60 percent were either sub employed, unpaid or under other non-suitable working conditions.Partially due to the working conditions, the social unrest, and political instability that the country is currently facing, the level of people living under poverty conditions is one of the highest in Latin America. In fact, poverty affects more than one out of every four inhabitants of the South American country, and almost ten percent were under extreme poverty conditions.
