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Economy of Ecuador

Ecuador is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Ecuador may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Ecuador exports around $25.48 billion and imports roughly $26.22 billion. 4.1% of population in the country are unemployed. The total number of unemployed people in Ecuador is 691,400. In Ecuador, 25.6% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Ecuador is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 1.3% of GDP. The Gini Index of the country is 48.5. Ecuador is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. Ecuador has a Human Development Index (HDI) of 0.711. Ecuador has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The Global Peace Index (GPI) for Ecuador is 1.997. Due to strong law enforcement presence and high social responsibility, Ecuador is very safe by international standards. The strength of legal rights index for Ecuador is 1. Overall, it is considered to be rather weak - bankrupcy and collateral laws are unable to protect the rights of borrowers and lenders in case of credit-related complications; credit information, if any at all, is scarce and hardly accessible.

Currency

The currency of Ecuador is United States dollar. The United States dollar is one of the most significant currencies in the world, and is used in several territories besides The United States including Puerto Rico, Guam, and The US Virgin Islands. The United States dollar is a stable currency that can be relied upon for investment opportunities. The plural form of the word United States dollar is dollars. The symbol used for this currency is $, and it is abbreviated as USD. The United States dollar is divided into Cent; there are 100 in one dollar.

Credit rating

The depth of credit information index for Ecuador is 8, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Ecuador has a credit rating score of B, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Ecuador has a credit rating score of B, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Ecuador has a credit rating score of B3, and the prospects of this rating are stable.

Central bank

The prime lending rate of Ecuador's commercial banks is 8.5. In Ecuador, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of Ecuador. Locally, the central bank of Ecuador is called Banco Central del Ecuador. The average deposit interest rate offered by local banks in Ecuador is 4%.

Public debt

Ecuador has a government debt of 27.3% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Ecuador is set at 22%. Personal income tax ranges from 5% to 35%, depending on your specific situation and income level. VAT in Ecuador is 12%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Ecuador is $181153 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Ecuador was last recorded at $11 million. PPP in Ecuador is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Ecuador is 94,473 billion. Based on this statistic, Ecuador is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Ecuador was last recorded at $6 million. The average citizen in Ecuador has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Ecuador averaged 4% in 2014. According to this percentage, Ecuador is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Ecuador.

Industry

Major industries in the country are petroleum, food processing, textiles, wood products, chemicals. The total labor force of Ecuador is 8,119,940 people, wherein 4.1% of population in the country are unemployed. The total number of unemployed people in Ecuador is 691,400. The Industrial Production growth rate of Ecuador is 2%.To read more about industrial information within Ecuador click on industry of Ecuador.

Agriculture

There are 15808 km2 of arable land in Ecuador, and it comprises 6% of the country's total territory. There are 29124 km2 of cultivated land in Ecuador. The country's major agricultural crops and products are bananas, coffee, cocoa, rice, potatoes, manioc, plantains, sugarcane, cattle, sheep, pigs, beef, pork, dairy products, balsa wood, fish, shrimp.To read more about agriculture click on agriculture of Ecuador.