Ecuador
The Economy of Ecuador
The Ecuadorian economy is based on petroleum production, which accounted for 59% of total export earnings, and agricultural production (bananas, shrimp, flowers, and other primary agricultural products) for domestic consumption and export. Ecuador is the world's largest exporter of bananas and plantains and a major exporter of shrimp. Exports of nontraditional products such as flowers and canned fish have grown in recent years. As of 2008, the country's economy reached 48.5 billion USD, with an annual growth rate of 4.25%
Ecuador's economic performance has been solid since it adopted the dollar as its national currency in 2000. Since then, growth has averaged 4.6% per year, supported by the stability brought by high oil prices, strong domestic consumer demand, increased non-traditional exports, and growing remittances from Ecuadorians living abroad. Ecuador has been unable to take full advantage of those resources for its own development. Mismanagement, lack of investment, and corruption in the state-owned oil sector has caused declines in state oil production over the last decade.
President Correa has announced his opposition to resumption of FTA talks with the U.S., citing concerns that Ecuador is not yet sufficiently competitive, especially in sensitive agriculture sectors. Prior to taking office, he said that the Government of Ecuador would only service its external debt obligations after funding domestic social priorities. As of January 2008, the government had met its external debt obligations.
