Exceptional Improvement
2010-12-22 14:46:10

Even though Ecuador has experienced recent economical difficulties, the country is rapidly regaining stability and setting the conditions for a prolonged growth. Ecuador has reaffirmed its support for free market principles. On march 2000, the Congress approved the Economic Transformation Law, that encourages companies doing business in the country and will do much to attract new foreign investment.

In February 2001, Ecuador signed a contract with an international consortium to build a heavy crude oil pipeline, that now is fully operational. The consortium invested over US$ 1 billion. The new pipeline will allow Ecuador to double its oil exports.

Most significant economic indicators are dramatically improving. In 2001, the economy grew 5.4%, the highest in Latin America. For the year 2003, the forecasting of growth is 3.00%. Inflation for the period January 2003 - January 2004 was 3.92%.
By June 2004, the inflation rate has fallen to 3.65%

Ecuador offers interesting investment opportunities. Options such as basic infrastructure and different possibilities in all the productive areas are quite appealing. According to studies carried out by the UNCTAD, foreign investors consider Ecuador to have the following strengths:

  • Abundance of natural resources, such as petroleum and minerals
  • High potential in the tourism, fishery, forestry and flower production sectors
  • Liberal legislation regarding investments
  • Low labor costs
  • Positive advantages as a result of the peace agreement signed with Peru
  • Increased market possibilities due to participation in regional economic integration process
  • Peaceful social climate

Ecuador also offers the following opportunities:

  • Interest in capitalization and privatization of state owned companies as well concessions of public works
  • Interest in alliances with foreign investors
  • A market with an immense potential of growth in many areas