Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Economy of Ecuador- statistics & facts
Ecuador's gross domestic product (GDP) was estimated to be approximately 121.6 billion U.S. dollars in 2024, placing it as the eighth-largest economy in Latin America. However, when adjusted for population, the country’s GDP per capita falls significantly below the regional average. As of 2023, the GDP per capita was almost 3,500 U.S. dollars lower than the median for the region. The economic outlook for Ecuador is also not favorable, as the growth rate of real GDP is expected to be lower than 0.4 percent in 2024. The ongoing societal challenges, characterized by widespread violence and political instability, have been detrimental for the national economy.
The production of oil has been an important part of economic growth; even though the South American country does not compete with the levels of production of the largest producers, proved crude oil reserves have remained stable at 8.3 billion barrels since 2015. In fact, Ecuador was twice a member of the Organization of the Petroleum Exporting Countries (OPEC) during two different periods – first from 1973 to 1992, and then between 2007 and 2020. Ecuador departed OPEC in 2020 due to the need for fiscal sustainability. From 2020 on, the oil production of the country dropped by more than 50,000 barrels per day, which subsequently led to an increase in the average price of crude oil from Ecuador until mid-2024.
Partially due to the working conditions, social unrest, and political instability that the country is currently facing, the percentage of people living in poverty is one of the highest in Latin America. In fact, poverty affects more than one out of every four inhabitants of the South American country, while almost ten percent were under extreme poverty conditions, demonstrating the county’s economic fragile state.
An economy sustained by the tertiary sector
Ecuador's economic growth has been driven by the robust performance of the tertiary sector, which has been gaining ground against the agricultural and industrial sectors over the last few decades. As of 2023, services accounted for 60 percent of the GDP of Ecuador, being eight-percent higher than in 2013. Notably, the agricultural sector continues to demonstrate robust growth, with the added value it contributes to the GDP increasing to 7.7 percent in 2023.The production of oil has been an important part of economic growth; even though the South American country does not compete with the levels of production of the largest producers, proved crude oil reserves have remained stable at 8.3 billion barrels since 2015. In fact, Ecuador was twice a member of the Organization of the Petroleum Exporting Countries (OPEC) during two different periods – first from 1973 to 1992, and then between 2007 and 2020. Ecuador departed OPEC in 2020 due to the need for fiscal sustainability. From 2020 on, the oil production of the country dropped by more than 50,000 barrels per day, which subsequently led to an increase in the average price of crude oil from Ecuador until mid-2024.
Employment and poverty
Ecuador presents the second-lowest unemployment rate in Latin America, only behind Mexico. Around 4.2 percent of people available and willing to work have not been able to find a job. Nonetheless, the conditions of employment are not as good as they could be for Ecuadorian employees. During May 2024, the number of people considered subemployed increased to 1.94 million, the highest figure of last year. In total, 8.41 million people were employed in Ecuador, with more than 60 percent being either underemployed, unpaid, or under other non-suitable working conditions.Partially due to the working conditions, social unrest, and political instability that the country is currently facing, the percentage of people living in poverty is one of the highest in Latin America. In fact, poverty affects more than one out of every four inhabitants of the South American country, while almost ten percent were under extreme poverty conditions, demonstrating the county’s economic fragile state.
