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Writer's picturePaul Mastilak

PROFILE: Ecuador


A Few Practical Tips for Doing Business in Ecuador

  • Business cards are necessary.

  • If you sell something, be prepared to get payment at the last minute.

  • Business attire required for meetings.

  • Business lunches tend to run long.

  • Build relationships.

  • Patience is important.

  • Expect the unexpected.

  • Touching people is a sign of friendship and trust.

Introduction - Brief History

  • 1533 - Spain conquered the northern Inca Indians

  • 1563 - Quito became the seat of Spanish colonial government

  • 1822 - Gained independence along with Colombia and Venezuela

  • 1904-1942 - Ecuador lost territories to its neighbors in a series of conflicts

  • 1995-1999 - Border war with Peru

  • 2008- Voters approved a new constitution which was Ecuador's 20th since it gained its independence

Location

Ecuador is located in western South America, bordering on the Pacific Ocean at the equator between Peru and Colombia


General Information

  • Government: Presidential republic

  • Capital City: Quito

  • Literacy Rate: 93.63 %

  • Size: Slightly smaller than Nevada

  • Population: 17.3M (2022 Est)

  • Population Growth Rate: 1.13% (2022 Est)

  • Population Distribution: Nearly half of population is located in the interior with large concentrations found in western coastal strip. Rainforests are sparsely populated.

Economy

  • Unemployment Rate: 10.45% (2021)

  • Currency Exchange Rate: 1 US Dollar = 25,000 Ecuadorian Sucre (1/16/23)

  • GDP: 106.17B (2021)

  • GDP Growth Rate: 4.24% (2021)

  • Labor Force: 8.528 M (2021)

  • Labor Force Breakdown: Agriculture - 26.1%, Industry - 18.4%, Services - 55.55 (2017)

  • Major Industries: Agriculture (sugar cane, bananas, milk, oil palm fruit, maize, rice, plantains, poultry, cocoa, potatoes,), petroleum, food processing, textiles, wood products and chemicals. The petroleum industry is the largest employer and money maker.

International Trade

Total Product Exports: $26.3B (2021)


Major Product Exports (2021)

  • Mineral fuels including oil - $8.6B

  • Fish - $ 5.7B

  • Fruits, nuts - $3.7B

  • Meat/seafood preparations - $1.3B

  • Ores, slag, ash - $1.1B

  • Live trees, plants and cut flowers - $964.6M

  • Cocoa - $940M

  • Gems, precious metals - $593M

  • Wood - $569.1M

  • Vegetable/fruit and nut preparations - $266.5M

Major Export Partners (2021)

  • US - 24.4%

  • Panama - 15.1%

  • China - 13.9%

  • Chile - 4.3%

  • Russia - 3.8%

  • Colombia - 3.2%

  • Spain - 2.8%

  • Netherlands - 2.6%

  • India - 2.55

  • Peru - 2.4%

  • Italy - 2.1%

  • France - 1.5%

Total Product Imports (2021) - $25.7B


Major Product Imports (2021)

  • Mineral fuels including oil - $4.9B

  • Machinery including computers - $2.6B

  • Vehicles - $2B

  • Electrical machinery, equipment - $1.9B

  • Pharmaceuticals - $1.5B

  • Plastics, plastic articles - $1.4B

  • Food industry waste, animal fodder- $1.2B

  • Other chemical goods - $591.8M

  • Cereals - $578.2M

Major Import Trading Partners (2021)

  • China - 23.5%

  • US - 22.1%

  • Colombia - 6.9%

  • Brazil - 3.9%

  • South Korea - 3.6%

  • Peru - 3.4%

  • Mexico - 2.8%

  • Spain - 2.4%

  • Japan - 2.27%

  • Germany - 2.25%

  • Argentina - 2.19%

  • Canada - 2.11%

English Language Online News Sites

Ecuador Times - general news - www.ecuadortimes.net


Sampling of Companies

National Holidays 2023

  • January 1 - New Year’s Day

  • February 20 - Carnival Monday

  • February 21 - Carnival Tuesday

  • April 7 - Good Friday

  • April 9 – Easter Sunday

  • May 1 - Labor Day

  • May 24 - Anniversary of the Battle of Pichincha

  • August 9 - Independence Day

  • October 9 - Guayaquil Independence Day

  • November 1 - All Souls Day

  • November 3 – Cuence Independence Day

  • December 25 - Christmas Day

By Paul Mastilak

InterMark3, Inc.

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