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Ecuador

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EconomicPoliticalStructural

Ecuador – Quick View
ECR score31.41 (Mar 2011)
ECR rank131 (Mar 2011)
Economic
GDP (2009)USD 24.12 billion
GNI per capita PPP (2009)USD 8,100
FDI inflow (Q3 2010)USD 149.3 million
Inflation (2010)3.33%
Central Bank assets (2009)USD 13,666.5 million
Unemployment rate (2010)5%
Government fiscal balance (September 2010)USD 576.9 million
Tax revenue (2010)16% of GDP
Political
Government typeDemocratic Republic
Recent political crisisNA
Economic freedom score158th
Freedom of information score102nd
Corruption perception index127th
Structural
Birth rate (2009)20 per '000
Population balanceUnder 14 years - 31.1%
Population balanceOver 64 years – 6.5%
Life expectancy yearsMale - 72 years
Life expectancy yearsFemale - 78 years
Mortality rate (2009)5 per '000
Literacy rate (2010)91%
Internet access (2010)16%

[Top] Economic Overview

Ecuador's economy is dependent on petroleum production and exportation of agricultural commodities.

(Source: Heritage.org)

Gross odmestic product (GDP)

Ecuador’s GDP grew continually from 2005 to 2009.

Ecuador GDP (2000 prices) (USD billion)

(Source:Central Bank, page: 5)

GDP growth rate

GDP growth rate fell sharply from 7.24% in 2008 to 0.36% in 2009. In 2010 (Q3), the rate is registered at 1.6%.

Ecuador GDP growth rate (Annual %)

(Source:Central Bank, page: 10)

Gross national income (GNI)

Ecuador GNI per capita, PPP (USD)

(Source: Worldbank.org)

In 2009, Ecuador’s Gross National Income (GNI) per capita was USD 8,100.

Tax rates

Ecuador has a progressive income tax system. Individual income tax rate is 35% and corporate income tax is 25%. The VAT rate in the country is 12%.

(Source: Tax Rates)

Personal income tax

Income Range (TZS)

Tax Rate (%)

Up to 8,910 

Nil

8,911 to 11,350

5

11,351 to 14,190   

10

14,191 to 17,030 

12

17,031 to 34,060 

15

34,061 to 51,080

20

51,081 to 68,110 

25

68,111 to 90,810

30

Over 90,811

35

(Source: Tax Rates)

Inflation

Ecuador Inflation (%)

(Source:National Statistics, page: 21)

Inflation rate fluctuated from 2005 to 20103.

Foreign direct investment (FDI)

Ecuador’s FDI inflow has fluctuated, with the highest FDI in 2008 at USD 1,005.4 million.

Ecuador FDI inflow (USD million)

(Source: Central Bank)

Central bank assets


Net foreign steadily increased from 2005 to 2009. Net domestic assets showed rising deficits till 2008. In 2009, foreign and domestic assets were registered at USD 8,210.80 million and USD 5,455.70 million respectively.

Ecuador Central Bank assets (USD million)

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer price index

Ecuador’s CPI increased from 127.17 to 130.59 in February 2011.

Ecuador Consumer Price Index

(Source:National Statistics, page: 5)

Interest rate

As of 2011, interest rates are recorded at 4.60%, 0.87% and 0.23% on time deposits, monetary deposits and repo operations respectively.


(Source: Central Bank)

Money supply


According to Central Bank of Ecuador, Money supply was: (M1) in 2009 (Aug) was USD 8,201.40 million and (M2) at USD 17,023.40 million.

Ecuador Money supply (USD million)

(Source: Central Bank)

Total expenditure

Total Expenditure steadily increased from 2005 to 2008. In 2010, the amount was projected to be USD 9,968.1 million.

Ecuador Total expenditure (USD million)

(Source: Central Bank) p = projected

Exchange rate

Since 2000, Ecuador’s currency is the US dollar (USD).

(Source: State.Gov)

Ecuador exchange rate (Euro/USD)

(Source: US Federal Reserve)

From 2008 to 2010, the Euro experienced steady depreciation against the US dollar, Ecuador’s currency.

Government finances

Fiscal balance

Fiscal balance declined from a surplus of USD 317.6 million in 2006 to a deficit of USD 2,635.0 million in 2009. However, in 2010 there was a return to surplus, specifically USD 576.9 million.

Ecuador Fiscal Balance (USD million)

(Source: Central Bank) p = projected

Total revenue

In 2010 the total revenue of Ecuador was projected to reach USD 10,545.0 million.

Total Revenue (USD million)

 

2010 (till Sep) (p)

2009

2008

2007

2006

2005

Oil

2,784.0

2,298.2

4,400.8

1,104.1

1,519.2

1,574.0

Non-Oil

7,761.1

9,284.7

9,232.4

7,273.1

5,498.2

4,669.7

Total Revenue

10,545.0

11,582.9

13,633.1

8,377.2

7,017.4

6,243.6

(Source: Central Bank) p = projected

Tax revenue

The country’s total tax revenue for 2010 comprised 16% of the GDP.

(Source: heritage.org)

Current account balance

Ecuador Current account balance (USD million)

(Source: Central Bank)

Current account balance declined steadily from 2007 to 2010. In Q2 2010, current account deficit was USD 213.3 million.

Balance of payments

In Q2 2010, balance of payments was USD 86.2 million.

 

Balance of payment (USD million)

 

2010 (Q2)

2009

2008

2007

Current Account

-213.3

-306.4

1,085.7

1,588.2

Capital and financial account

173.5

-2,501.1

-165.8

-145.4

Capital Account

4.7

17.7

19.9

15.2

Financial Account

168.8

-2,518.8

-185.7

-160.5

Errors and Omissions

126.0

160.3

14.0

-56.2

Balance of Payments

86.2

-2,647.2

933.9

1,386.6

(Source: Central Bank)

[Top] Labour Force and Employment Overview

Labour force

The labour force rose from 2005 to 2009.

Ecuador Labour force

(Source:WorldBank.org)

Participation rate

The labour force participation rate in Ecuador reached 45.8% in 2010.

Ecuador Gross labour participation rate (%)

(Source: National Statisticss, page: 3)

Unemployment rate

Ecuador’s unemployment rate increased from 5% in 2007 to 6.5% in 2009. However, the rate declined again reaching, in 2010, the rate of 5%.

Ecuador Unemployment rate (%)

(Source: National Statisticss, page: 3)

Minimum wage

In 2009, minimum wage in Ecuador was USD 240 per month.

(Source: Minimum Wage.org)

Level of unionisation

Confederación Ecuatoriana de Organizaciones Clasistas Unitarias de Trabajadores is the trade union centre in Ecuador.

Only workers under the Labour Code are permitted to strike. Additionally, private sector strikes can be held only at the factory or enterprise level.

(Source: ituc-csi.org)

[Top] Political Stability

The Republic of Ecuador is a democratic republic.  

The government consists of an Executive branch, a Legislature and a Judiciary.

The president holds the ultimate executive powers. Both the president and vice-President have a term of four years.

The country has a unicameral National Congress comprising of 100 members elected through voting.

Mr. Rafael Correa is the current president of Ecuador.

(Source: Ecuador Politics,bbc)

Regulatory environment

Ecuador Economic Freedom Indices

(Source: Heritage.org)

Ecuador economic freedom score is 47.1, making its economy it the 158th freest in the 2011 Index of Economic Freedom. Ecuador ranks 27th out of the 29 countries in the South and Central America/Caribbean region.

(Source: Heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Ecuador is ranked 127th on this list with a score of 2.5. This indicates the moderate level of corruption that prevails in the country.

(Source: transperency.org)

Freedom of information

Media in Ecuador is mainly operated by private owners. Radio is a commonly used medium of entertainment.

(Source: bbc)

World Press Freedom Index 2010 ranks Ecuadorat 102nd with a score of 27.50, which indicates that media in Ecuador is restricted.

(Source:rsf.org)

Press

  • El Comercio (daily Published)
  • Hoy (daily Published) 
  • El Tiempo  (daily Published)
  • La Hora (published daily at evening by regional editions)
  • El Telegrafo (published daily)
  • El Universo (published daily in Guayaquil-based)
  • Expreso (published daily in Guayaquil-based)
  • El Financiero (published by economic weekly)

Television

  • TC Television (private)
  • Ecuavisa (private)
  • Telesistema (private)
  • Gamavision (private)
  • Teleamazonas (private)
  • ETV Telerama (private)

Radio

  • Radio Vision (private owned by Quito and Guayaquil)
  • Radio Quito [private owned by mediumwave (AM)]
  • Cadena Radial Ecuatorians (CRE) (private owned by Guayaquil-based network)
  • Radio Centro (private owned)
  • Radio Sucre (private owned by national mediumwave (AM) news and information network)

(Source: bbc)

Judicial system

Judicial power lies with the Judiciary, which is a governing authority independent of the executive and the legislature.

The judiciary consists of:

  • Supreme Court of Justice
  • Fiscal Tribunal
  • Contentious Administrative Tribunal

(Source: Ecuador Politics)

[Top] Demographic Overview

Population

Ecuador’s total population for 2010 was about 14.31 million.

Ecuador Population (million)

(Source: imf.org)

Gender ratio

The country’s gender ratio was recorded at 104.4 (men per 100 women) in 2010.

(Source: undp, page: 181) 

In 2009, the population below 14 years of age constituted 31.1%.  While, those above 60 years of age make up 9.7% of total population.

(Source: un.org)

Mortality rate

Mortality rate of infants was registered at 20 (per '000 live births) in 2009. Total mortality rate in the country, for 2009, was 5 per thousand people.

(Source: WorldBank.org)

Average life expectancy rate

Average life expectancy in Ecuador for men was 72 years and females, 78 years, in 2008.

(Source: WorldBank.org)

Birth rate

In 2009, crude birth rate was registered at 20 per thousand populations.

(Source: unicef.org)

Migration

International migrant stock till mid 2010 was recorded at 393,600 people, comrpising 2.9% of the population.

(Source: un.org)

Ethnicity

The main ethnic groups in Ecuador are: Mestizo, Caucasian and African.

(Source: un.org)

Human development index (HDI)

The country is ranked 77th on United Nation’s Human Development Index, allowing it to fall into the category of ‘High Human Development.’ HDI integrates a country’s life expectancy, schooling and income. This signifies the overall social and economic development of a nation.

(Source: undp.org, page: 146)

[Top] Soft Infrastructure

Education

The Ministry of Education is the governing authority responsible for operating the national education, formulation and implementation of cultural and sport policies, and scientific and technological development.

The principles of the education system of Ecuador is spelled out in to three basic documents: The New Constitution (2008), The Law on Education and Culture (1983), and The National Teaching Profession Act and Scales National Teachers (1990).

Education is a right of the individual as specified by the Constitutional Act 2008 and but it is also the unavoidable duty of the state of Ecuador.

The education System of Ecuador is divided in four types: Pre-primary Education, Primary Education, Secondary Education and Higher Education.

In 2010, the country’s literacy rate was registered at 91%.

(Source: unesco.org, undp.org)

Health

Ministry of Public Health is the governing body responsible for health and welfare issues of the nation.

Health care services are provided by public and private institutions as well as non-profit organisations. This network of institutions is coordinated by the National Health Council.

The public subsector is comprised of the Ministry of Public Health, National Child and Family Institute, Public Health Service of the Armed Forces and Police, the IESS, and the Ministry of Social Welfare. Private organisations include the following: Guayaquil Child Protection Society, Guayaquil Welfare Board and Society to Combat Cancer.

The public subsector focuses on the healthcare needs of around 59% of the population. Ministry of Public Health covers approximately 31% of the population; Society to Combat Cancer, the Guayaquil Welfare Board, and other non-profit private institutions cover 10%; the Armed Forces and Police cover 1%; social security cover 18%; and various private for-profit enterprises cover 10%; and the remaining 30% do not receive any formal medical care.


(Source: paho.org)

[Top] Hard Infrastructure

Ports

There are nine sea ports in Ecuador: Bahia De Caraquez, Balao, Portuaria de Esmeraldas, Tepre, Guayaquil, La Libertad, Manta, Puerto Bolivar and San Lorenzo.

 

(Source:World Port Source)

Airports

There are 27 airports in Ecuador.

Town

Airport name

Runway length (ft.)

Ambato

Chachoan

6,500

Baltra  Galapagos Is

Seymour

7,800

Coca

Francisco De Orellana

4,900

Cuenca

Mariscal Lamar

6,200

Gualaquiza

Gualaquiza

6,800

Guayaquil

Simon Bolivar Intl

8,000

Ibarra

Atahualpa

6,500

La Toma

Camilo Ponce

6,500

Latacunga

Cotopaxi Intl

12,100

Macara

J M Velasco Ibarra

3,200

Macas

Macas

8,200

Machala

General Serrano

5,400

Manta

Eloy Alfaro Intl

9,300

Montalvo

El Carmen

4,500

Nueva Loja

Lago Agrio

7,500

Portoviejo

Reales Tamarindos

7,200

Quito

Mariscal Sucre Intl

1,0200

Riobamba

Chimborazo

5,200

Salinas

Gen Ulpiano Paez

7,900

San Cristobal

San Cristobal

6,800

San Vicente

Los Perales

4,400

Santa Rosa

Tcrnel Victor H Francisco Lar

3,400

Santo Domingo De Los Colorados

Santo Domingo De Los Colorados

3,600

Shell Mera

Rio Amazonas

5,000

Tachina

General Rivadeneira

7,800

Tarapoa

Tarapoa

5,400

Tulcan

El Rosal-Tcrnel Mantilla

8,000

 

(Source: Aircraft Charter)

Telecommunication

Fixed Telephone Lines

In 2009, number of fixed telephone line users in Ecuador was recorded at 2,004,228.

Ecuador Fixed telephone lines

(Source: itu.int)

Mobile cellular subscriptions

In 2009, number of mobile cellular subscription users in Ecuador was recorded at 13,634,768.

Ecuador Mobile cellular subscription

(Source: itu.int)

Approximately 2,359,710 out of 14,790,608 people, i.e. 16% of population used the Internet in 2010. From 2000 to 2010, Internet users grew by 1,211%.

(Source: Internet World Stats)

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