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Ecuador Economy
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Updated April 7, 2010 The Ecuador economy is the subject of much debate in the world press. For good reason, the strength of a nation’s economy results in the happiness of its people. Economic data can measure output in dollar terms, but it takes an insider’s viewpoint to measure happiness. The Ecuador economy is sustained by the production of approximately 500,000 barrels of oil per day, a growing tourism industry, an influx of capital sent by Ecuadorians living abroad, and the export of agricultural products such as bananas, coffee, fish, and sugarcane. Although the  Ecuador economy is not booming, growth is
sustained at approximately 3.0% of GDP per year, and is project to
continue at that rate. Daily Life in Ecuador
Ecuador’s growing consumer culture and middle class can be seen in daily life. New malls across the country are packed. Credit, although expensive, is available in the form of credit cards, auto loans, and mortgages. Construction projects are booming in cities across the country. This development is coming from Ecuador’s growing middle class. Ecuador has an unemployment rate of approximately 10%. Although the economy is expanding, GDP growth comes primarily from government spending. The labor market is extremely competitive and even skilled workers experience difficulty finding good employment. Unskilled workers find employment on farms or as owners of small neighborhood stores. The poor labor market has resulted in a disgruntled working class. U.S. Dollar in Ecuador
The currency of Ecuador is the United States dollar. After a financial crisis in 1999, the Ecuadorian government adopted the dollar. While the dollar has helped Ecuador to maintain moderate inflation, economic growth is limited as the government lacks monetary policy controls necessary to maintain competitiveness in the marketplace. Ecuadorians are happy that inflation is under control. The trade-off is that locally produced goods are more expensive than they might be with an Ecuadorian (or regional) currency. A goal of President Rafael Correa is to institute a regional currency for the Andean region. As an economist with a Ph. D. from the University of Illinois at Urbana-Champaign, Dr. Correa is Ecuador’s best chance to implement such ambitious changes. However, for the time being, Correa is strongly stating his support for the dollarization program in Ecuador, and says he has no intention of changing the Ecuadorian currency in a unilateral move. Having lived here for two years, we have not seen our living standard changed dramatically due to price increases. We have noticed some food inflation. We purchase all of our fruits and vegetables for around $15 per week, and when we first arrived, it generally cost$8-$12. Building costs have increased some, particularly due to the significant increase in the cost of iron re-bar and cement. |
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Ecuador Compared to the United
States (2006)
Median Age
Ecuador 23.9 years U.S.A. 36.6 years GDP (PPP) Ecuador $61.52 Billion U.S.A $13.06 Trillion |
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GDP
Growth
Rate  Ecuador 4.1% U.S.A. 2.9% Inflation Ecuador 3.3% U.S.A. 3.2% Public Debt Ecuador 33% of GDP U.S.A. 64.7 % of GDP Trade Deficit Ecuador -0.8% USA -5.4% The drop drop in oil prices that occurred in 2009 caused Ecuador’s trade deficit to increase. The government is taking steps to limit imports to stabilize the growing trade deficit. The government since Correa came into office has been spending more money on social programs as part of its plan to move the economy toward 21st Century Socialism. However, with the drop in oil prices, plans are in process to decrease public spending. What will change with 21st Century
Socialism?
Governments in Latin America have been unstable for a long time. Correa has been proposing a plan of 21st Century Socialism. See our story on 21st Century Socialism here. The meaning of the word socialism is very different than the common use of the term in the U.S. While it does mean that the people of Ecuador may share a collective ownership of some means of production, specifically this government wants more state participation in energy and mining, what it means at a deeper level is that the people have a more direct control over the activities of government. Participatory Democracy is a movement that is sweeping Ecuador. More money from the country’s resources will stay in Ecuador to improve education, health care, and infrastructure. This is good for anyone living in Ecuador. The Changes of Rafael Correa
The people of Latin America are currently embracing free market principals in their daily life. I hear very little talk of “Socialism” on the streets. On the contrary, I see a prosperous free market and an active democracy. Ecuadorian President Rafael Correa speaks of radical change and Socialism as a means of communicating with citizens that feel cheated by past administrations and multinational corporations. The upcoming changes in Ecuador will support democracy and the Ecuador economy by reducing corruption and allocating national resources where they are needed most. Data taken from www.economist.com and CIA The World Factbook. |
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| Living in Ecuador Living in Ecuador: Insider's Tips. Make your Ecuador move problem free with travel facts, living advice. Learn about Ecuador culture from U.S. Expats. |
| Life in Ecuador Life in Ecuador: Personal accounts of obstacles and triumphs encountered while living in Ecuador. |
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| Retirement in Ecuador Retirement in Ecuador: newest hot-spot for retirees and expats wanting the good life without the financial stress. |
| Healthy Living in Ecuador: A Country Where It’s Hard Not
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| Ecuador Dentists Dentistry in Ecuador with well trained Ecuador dentists can be a wondeful experience with quality care. Consider dental vacations |
| Move to Ecuador: Q and A’s Answers to many of your questions about you move to Ecuador. |
| Real Estate in Ecuador Real estate in Ecuador is booming because prices are low and values are high. International real estate investors can build a foundation of wealth before the usual rush of discovery takes place |
| Ecuador Real Estate Tours Ecuador Real Estate tours will focus on the area around Cotacachi, Otavalo and Ibarra |
| Vacation and long term rentals listings in Ecuador Long term and vacation rental listings in Cotacachi, Ecuador |
| Condos in Ecuador,Condos
for sale in Ecuador Condos in Ecuador offer a wonderful bargain for the full-time resident or the part-time vacationer. Mountain condominiums offer great value. |
| Pro-Ecuador Services: Cotacachi Real estate Pro-Ecuador Services include offering Cotacachi real estate, buyer's agent for real estate in Ecuador, location of vacation rentals, document translation, research and analysis. |
| Ecuador Real Estate Buying Process Ecuador Real Estate Buying Process is much easier than most Latin American countries |
| Cotacachi Real Estate: Properties for Sale in Cotacachi Cotacachi Real Estate offers surprising values in the midst of tranquility and peace. Low cost of living a plus. |
| Cotacachi: A Pastoral Ecuador Village Cotacachi: A pastoral Ecuador village is enticing foreigners from many shores with its vibrant hills and quaint colonial charm. |
| Cotacachi Hotels, Hostels and Retreats, Cotacachi, Ecuador Several Cotacachi Hotels, Hostels and Retreats are available, with a variety of prices, locations and amenities, from clean and economical to the most elegant settings you can imagine. |
| Ibarra, the White City Ibarra, the White City, is a colonial city in Ecuador about 3 hours north of Quito |
| Hidden Places in Ecuador Where to find those hidden places in Ecuador, those secret places in Ecuador that the locals keep to themselves, secret beaches, jungle hideaways, rare birds, orchids, wildlife. |
| Ecuador Beaches Ecuador Beaches from Pedernales to Manta are stunning, both the water and the weather is warm and it’s neither well developed nor heavily populated. |
| Ecuador laws are Fair and Easy and Provide Protection for
Foreign Investors Following Ecuador laws is easy and provides protection for foreigners. Ecuador laws are favorable, visa requirements not complicated. |
| Information on Ecuador Information on Ecuador: some of the best websites available will help you make informed decisions about your visit, move or investment in Ecuador. |
| Travel Safety Travel safety information for your trip to Ecuador with details about immunizations, food and water, and personal security. |
| Ecuador Economy Ecuador Economy explained in plain language and compared to the United States. |
| Learn Spanish In Ecuador Learn Spanish In Ecuador shows how anyone can learn Spanish just by living in Ecuador. |
| Spanish Phrases and Spanish Words Learning useful Spanish phrases, Spanish words and Spanish sayings is easy and makes navigating Ecuador so much more enjoyable. |
| Ecuador Movies and Videos On our multimedia page you'll find book-reviews, articles and short films about Cotacachi and Ecuador |
| Pictures of Ecuador A tour of Ecuador via pictures of Ecuador. Pictures and descriptions that tell a story |
| Ecuador Eco-Photo Tour Ecuador Eco-Photo Tour – Capture the majesty of Ecuador’s scenic wonders with a ten-day tour in photographic paradise. |
| Living in Ecuador Blog We share our daily Ecuador Experience as well as answer your questions about Living in Ecuador. Read answers to questions from Pro-Ecuador readers. |
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