Economy of Ecuador

Ecuador is a strategic commercial hub due to its central location and great natural harbors. Many visitors to South America start their tour in Ecuador because of its relative proximity to North America and convenient access to the rest of South America.’

Important Cities

Quito is the capital and political heart of Ecuador. Guayaquil is the financial and business center, as well as the Main seaport. Cuenca is the cultural center of the country and is another important Andean city. Manta and Esmeraldas have ports that are important for international commerce. Tena is the main starting point for tropical rainforest tours.

Economic Sectors

Petroleum has been the main source of foreign currency to the country for the past 25 years. Oil exploration began in Ecuador on the Santa Elena Peninsula in the first quarter of the 20th century. However oil production did not really begin until the seventies when exploration began in the Amazon region, turning Ecuador into one of the world’s most important exporters of petroleum. Other products of economic importance to the country are bananas, coffee, cocoa, shrimp, timber, tuna, and, more recently, flowers. Ecuador has a vast array of natural riches. It has been calculated that there are huge gas reserves in the Gulf of Guayaquil. Tourism is Ecuador’s fourth most important source of income.

There are also non-traditional export products, such as certain fruits and vegetables, which are slowly gaining a foothold in the international market. Currently, Ecuadorian legislation is being drafted to encourage international investment in Ecuador. Handicrafts are another product that Ecuador produces in bulk. Although this industry is overshadowed by the larger ones, Ecuadorian handicrafts are exported to international markets all around the world.