On January 9, 2000, the administration of President Jamil Mahuad announced its intention to adopt the U.S. dollar as the official currency of Ecuador to address the ongoing economic crisis. Subsequent protest led to the removal of Mahuad from office and the elevation of Vice President Gustavo Noboa to the presidency.
The Noboa government confirmed its commitment to dollarize as the centerpiece of its economic recovery strategy. The government also entered into negotiations with the International Monetary Fund (IMF), culminating in the negotiation of a 12-month stand-by arrangement with the Fund. Additional policy initiatives include efforts to reduce the government's fiscal deficit, implement structural reforms to strengthen the banking system and regain access to private capital markets. Buoyed by high oil prices, the Ecuadorian economy experienced a modest recovery in 2000, with GDP rising 1.9%. However, 70% of the population lives below the poverty line, more than double the rate of 5 years ago. Inflation in 2000 remained high at 96.1%, but the rate of inflation continues to fall. Monthly inflation in February 2001 was 2.9%.
See also Unidad de Valor Constante
GDP: purchasing power parity - $54.5 billion (1999 est.)
GDP - real growth rate: -8% (1999 est.)
GDP - per capita: purchasing power parity - $4,300 (1999 est.)
GDP - composition by sector:
agriculture:
14%
industry:
36%
services:
50% (1999 est.)
Population below poverty line: 50% (1999 est.)
Household income or consumption by percentage share:
lowest 10%:
2.3%
highest 10%:
37.6% (1994)
Inflation rate (consumer prices): 59.9% (1999 est.)
Labor force: 4.2 million
Labor force - by occupation: agriculture 30%, industry 25%, services 45% (1999 est.)
Unemployment rate: 12% with widespread underemployment (November 1998 est.)
Budget:
revenues:
planned $5.1 billion (not including revenue from potential privatizations)
expenditures:
$5.1 billion including capital expenditures of $NA (1999)
Industries: petroleum, food processing, textiles, metal work, paper products, wood products, chemicals, plastics, fishing, lumber
Industrial production growth rate: 2.4% (1997 est.)
Electricity - production: 9.657 billion kWh (1998)
Electricity - production by source:
fossil fuel:
27.96%
hydro:
72.04%
nuclear:
0%
other:
0% (1998)
Electricity - consumption: 8.981 billion kWh (1998)
Electricity - exports: 0 kWh (1998)
Electricity - imports: 0 kWh (1998)
Agriculture - products: bananas, coffee, cocoa, rice, potatoes, manioc (tapioca), plantains, sugarcane; cattle, sheep, pigs, beef, pork, dairy products; balsa wood; fish, shrimp
Exports: $4.1 billion (f.o.b., 1999)
Exports - commodities: petroleum, bananas, shrimp, coffee, cocoa, cut flowers, fish
Exports - partners: US 39%, Colombia 7%, Italy 6%, Peru 5%, Chile 3% (1998)
Imports: $2.8 billion (c.i.f., 1999)
Imports - commodities: machinery and equipment, raw materials, fuels; consumer goods
Imports - partners: US 39%, Colombia 11%, Japan 9%, Venezuela 5%, Mexico 3% (1998)
Debt - external: $15.3 billion (1999)
Economic aid - recipient: $695.7 million (1995)
Currency: 1 sucre (S/) = 100 centavos
Exchange rates: sucres (S/) per US$1 - 24,860.7 (January 2000), 11,786.8 (1999), 5,446.6 (1998), 3,988.3 (1997), 3,189.5 (1996), 2,564.5 (1995)
Fiscal year: calendar year