Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Digital Nomadism
    • Events
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • UK
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Digital Nomadism
    • Events
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • UK
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
👤

THE NUMBER ONE SOURCE FOR EXPATS, DIGITAL NOMADS, AND DREAMERS.

This field is for validation purposes and should be left unchanged.
  • Your Escape Plan

Ecuador – The Economic Mouse that Roared

  • BY EA Editors
  • April 22, 2012
Total
0
Shares
0
0
0

 Ecuador – The Economic Mouse that Roared

Come on, admit it.  If I spoke to you about an economic giant…a powerhouse in Latin American fiscal health, perhaps a lot of countries would come to mind – Chile, Argentina and, most likely Brazil, which is poised to enjoy not only the 2014 World Cup extravaganza, but also the 2016 Olympic Games.  What if I told you that against Brazil’s “Goliath”, stands a tiny, but valiant “David” ? Meet the Economic Mouse that Roared.

It’s true.  Ecuador’s economy is growing even faster than that of Brazil !  Since the year 2000, Ecuador has averaged a 5.5% growth rate to Brazil’s more modest 4.0% growth rate.  Few would have ever imagined it as Ecuador limped out of a horrid economic crisis in 1998-1999.  However, the story of Ecuador’s resilient and expanding economic base does not stop at a single economic indicator.  It is showing success on multiple fronts.

For example, Ecuador also excels at debt-to-GDP ratio, which shows an impressive 24 percent, as confirmed in a study by the United Nations Economic Commission for Latin America and the Caribbean. By comparison, as a stark contrast, the United States features a troubling ratio of 100 percent. Ecuador’s strong showing, as the second fastest growing South American economy, as well its orderly handling of existing debt, plus a strong economic prosperity and diversification program under the President Correa Administration has lifted Ecuador onto the global economic stage and likely well prepared it for a return to the international financial markets.

Further evidence of Ecuador’s economic emergence showed the country clocking in an impressive 6.5% GDP growth rate in 2011, comparing favorably with that year’s strongest global economies, as illustrated by the following chart:

For an encore, Ecuador followed up the successful GDP numbers of 2011, with a lower, but still very consistently impressive 5.1% GDP growth rate in 2012.

Ecuador’s import/export figures are rapidly improving, especially under the tenure of the Correa Administration, which has made a valiant effort to diversify Ecuador away from an almost 100% pure natural resources and agricultural base, to one that also features a more diversified manufacturing component.  While still a long ways away from “ideal”, the improvement can be noted in the chart below, as one can readily see a readily notable increase in domestic manufacturing exports, and a relatively modest need to import natural resources or agricultural products, both positive trending signs of a healthy economy.

Also, the Import/Export sector is seeing significant improvements in efficiencies, where past paperwork was often measured in months and thousands and thousands of dollars.  Today, the realities are much different, as can be seen by the chart below.

This economic renaissance has followed a concerted and purposeful effort by the Correa Administration to focus on public investment, which took 12 percent of GDP, and on improving the country’s national security, infrastructure, education and human development sectors.  Ecuador has now hung up the proverbial “Open for business” shingle and is now poised to welcome foreign businesses, in a more efficient and professional manner.  This preparatory stage, much needed to the point of being “essential”, unfortunately caused some in the misguided foreign press to label Correa’s Ecuador as “anti-foreign investment” or “eschewing FDI”.  Nothing could be further from the truth and a “boots on the ground” inspection of the country would instantly erase any lingering doubts.

Showing further sounds of a strong economic base, especially in today’s turbulent currency markets, Ecuador boasts a relatively significant $2 billion worth of gold reserves as of the 2011 audit.  Likewise, Ecuador enjoys a solid 7.2 billion barrels of oil reserves, as of 2012, placing it 20th in the entire world, ranking, perhaps surprisingly, ahead of nations such as Norway and Oman.

Also, Ecuador has put a lot of emphasis on the multilateral approach to economic expansion, being involved  with economic committees representing diverse bodies such as the United Nations (UN), the Organization of American States (OAS), the Rio Group and the Latin American Energy Organization, to name a few.  The focus on economic trade expansion additionally has Ecuador featured as a member of the Union of South American Nations, the Community of Andean Nations and Bolivarian Alliance for the Americas (ALBA).

These activities have led Ecuador to be well recognized, especially under the Correa tenure, for diversifying their political and economic ties with countries in Latin America, Europe, and Asia.  The crowning achievement, giving credibility to the Ecuadorian economic miracle success, was the 2012 credit rating upgrade conferred upon Ecuador, by both Standard &Poor’s and Moody’s, considered the premiere global credit rating agencies.  This, at a time, when major “industrial powers” such as the USA and France, are seeing credit rating cuts by similar credit rating entities.

In closing, Ecuador has come a long way from an economic, banking and currency sector meltdown in 1998-1999.  Having accomplished this in such a short period of time is nothing short of an economic miracle, worthy of praise.  Having done so while laboring in relative obscurity, makes Ecuador one of the globe’s best true value plays for the retail investor, as well as institutional investors seeking excellent returns on FDI projects.  Come explore this mighty economic “mouse”, before its boisterous roar becomes impossible to ignore.  By then, the best value play deals will be gone.

 

If you’re considering traveling or moving abroad, be sure to explore your healthcare options. Visit International Citizens Insurance to learn more and get a free quote.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Previous Article
  • Your Escape Plan

Pirates of the Pacific – Expats in Ecuador

  • BY EA Editors
  • January 24, 2012
View Post
Next Article
  • Your Escape Plan

Freedom Is Yours! Will You Take It?

  • BY mhollen
  • January 24, 2013
View Post
You May Also Like
Tokyo's infamous cherry blossoms.
View Post
  • Japan
How I Built a Life in Tokyo in 3 Months
  • BY Annie Nagel
  • September 8, 2025
Global Diversification Tips from Experts
View Post
  • Plan B
Staying in One Country Could Be Your Biggest Financial Risk
  • BY Isha Sesay
  • September 3, 2025
Low-Tax Countries to Save Money in 2025
View Post
  • Plan B
Where Expats Are Moving to Keep More of Their Money
  • BY EA Editorial Staff
  • August 27, 2025
The search for a second passport has shifted from luxury to necessity for many Americans
View Post
  • Second Residency
America’s Second Passport Fever
  • BY EA Editorial Staff
  • August 25, 2025
Belize Offshore Banking
View Post
  • Plan B
Why Belize’s Waters Run Deep in Offshore Banking
  • BY Luigi Wewege
  • August 20, 2025
International Banking Structures
View Post
  • Plan B
Tax-Friendly Banking Solutions for International Investors
  • BY EA Editorial Staff
  • August 13, 2025
Global Residency Program and Citizenship Programs
View Post
  • Plan B
Your Next Investment Should Be a Residency Program
  • BY EA Editorial Staff
  • August 6, 2025
Tunisia, North Africa - One of most affordable Countries to live
View Post
  • Plan B
The Most Affordable Countries to Live in 2025
  • BY EA Editorial Staff
  • July 30, 2025
Trending Posts
  • Global Diversification Tips from Experts 1
    • Plan B
    Staying in One Country Could Be Your Biggest Financial Risk
    • September 3, 2025
  • England: where history lingers in the mist. 2
    • England
    Top 10 Things to Know If You’re Moving to England
    • September 5, 2025
  • Tokyo's infamous cherry blossoms. 3
    • Japan
    How I Built a Life in Tokyo in 3 Months
    • September 8, 2025
  • The sweeping desert plains of Western Sahara, where beauty meets political tension 4
    • Africa
    Western Sahara. Africa’s Last Colony
    • September 12, 2025
  • Latest News this Week: Molten lava arcs skyward from Kīlauea’s summit crater 5
    • News
    Latest News: Lava, Leaders, and Lines in the Sand
    • September 4, 2025
InterNations
Know Before You Go
  • Costa Rica Rainy Season - Rain clouds gather over a quiet Costa Rican road as the season begins 1
    • Costa Rica
    When the Rain Falls in Costa Rica
    • September 15, 2025
  • England: where history lingers in the mist. 2
    • England
    Top 10 Things to Know If You’re Moving to England
    • September 5, 2025
  • Friendly locals and relaxed daily life in The Gambia 3
    • Africa
    Could The Gambia Become Africa’s Next Digital Nomad Safari?
    • August 29, 2025
  • Croatias Tourism: Aerial view of Croatia’s stunning Adriatic coastline, where historic towns meet turquoise waters 4
    • Croatia
    Croatia’s Journey to Wonder
    • August 22, 2025
  • Moving to Morocco: a palette of Tradition, Texture of Tradition 5
    • Morocco
    Top 10 Things to Know if You’re Moving to Morocco
    • August 18, 2025
Learn More
  • About Us
  • Contact Us
  • Subscribe
Why Subscribe

The newly imagined Escape Artist brings you fresh content with a global focus, and sharp, up-to-the-minute coverage of the joys, challenges, and opportunities of life abroad.

For a limited time, we’re offering a special discount on all subscription deals, so be sure to lock-in these incredible savings and start receiving top-notch travel and expat content today!

Sign up for the EA Newsletter

Get important news delivered directly to your inbox and stay connected!

This field is for validation purposes and should be left unchanged.
Escape Artist
  • Terms & Conditions
  • Privacy Policy
  • Cookies Policy
  • Disclaimer

Input your search keywords and press Enter.

Newsletter Subscription
Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/