Economic overview: Ecuador has substantial oil resources and rich
agricultural areas. Growth has been uneven in recent years because
of fluctuations in prices for Ecuador's primary exports - oil and
bananas - as well as because of government policies designed to curb
inflation. President Sixto DURAN-BALLEN launched a series of
macroeconomic reforms when he came into office in August 1992, which
included raising domestic fuel prices and utility rates, eliminating
most subsidies, and bringing the government budget into balance.
These measures helped to reduce inflation from 55% in 1992 to 25% in
1995. DURAN-BALLEN has a much more favorable attitude toward foreign
investment than his predecessor and has supported several laws
designed to encourage foreign investment. Ecuador has implemented
free or complementary trade agreements with Bolivia, Chile,
Colombia, Peru, and Venezuela, as well as joined the World Trade
Organization. Growth slowed to 2.3% in 1995 due in part to high
domestic interest rates and shortages of electric power.

GDP: purchasing power parity - $44.6 billion (1995 est.)

GDP real growth rate: 2.3% (1995 est.)

GDP per capita: $4,100 (1995 est.)

GDP composition by sector:
agriculture: 13%
industry: 39%
services: 48% (1992 est.)

Inflation rate (consumer prices): 25% (1995)

Labor force: 2.8 million
by occupation: agriculture 35%, manufacturing 21%, commerce 16%,
services and other activities 28% (1982)

Unemployment rate: 7.1% (1994)

Budget:
revenues: $3.3 billion
expenditures: $3.3 billion, including capital expenditures of $NA
(1996 est.)

Industries: petroleum, food processing, textiles, metal work,
paper products, wood products, chemicals, plastics, fishing, lumber

Industrial production growth rate: 6.4% (1993)

Electricity:
capacity: 2,230,000 kW
production: 6.9 billion kWh
consumption per capita: 612 kWh (1993)

Agriculture: bananas, coffee, cocoa, rice, potatoes, manioc,
plantains, sugarcane; cattle, sheep, pigs, beef, pork, dairy
products; balsa wood; fish, shrimp

Illicit drugs: significant transit country for derivatives of coca
originating in Colombia, Bolivia, and Peru; minor illicit producer
of coca; importer of precursor chemicals used in production of
illicit narcotics; important money-laundering hub

Exports: $4 billion (f.o.b., 1994)
commodities: petroleum 39%, bananas 17%, shrimp 16%, cocoa 3%