Economy and Business in Ecuador

In the past decade Ecuador has experienced an economic crisis that it has been struggling to come back from. In 1999, a decline in world petroleum prices caused the economy to fall dramatically which lead to a default of debt payment and a massive depreciation in Ecuadorian currency. Since the crisis, Congress has dollarized the economy which has for the most part led to stability and growth levels that reflect those of the pre collapse years.

Today, Ecuador's economy relies heavily on the services industry which accounts for some 60% of the nation's GDP and nearly 70% of the 4.5 million person labor force. The next largest sector of the GDP is industry accounting for 34% and 24% of the labor force. Such industrial commodities produced include petroleum, food processing, textiles, wood products, and chemicals. Petroleum is the most exported product.

Finally, agriculture in Ecuador accounts for only 6% of the nation's GDP and 8% of the national labor force. Agricultural products produced include bananas, coffee, cocoa, rice, potatoes, tapioca, plantains, sugarcane cattle, sheep, pigs, beef, pork, dairy products, balsa wood, fish, shrimp. Of these products bananas and shrimp are exported to other countries such as the Unites States, Peru, Colombia, and Chile.