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Recent trends

Ecuador has made progress in some development indicators in the past decades. In particular, the country has made improvements in the net secondary enrolment rate (87.2%), which is now on the same level as Chile (87.1%), and above the Latin America and Caribbean (LAC) average of 74.4%. Life expectancy at birth improved from 69 to 76.3 years between 1990-2016. The infant mortality rate is 12.5 per 1 000 live births, slightly below the LAC average of 14.7. The homicide rate, at 6.5 per 100 000 inhabitants, is more than three times lower than the LAC average of 21.9.

Ecuador’s gross domestic product (GDP) per capita increased by almost one-and-a-half times between 1990 and 2017, but the country still lags behind in terms of vulnerable employment, corruption and environmental issues. The share of vulnerable employment (45.5%) is among the highest in the region. More than half of the population (65%) thinks corruption is widespread throughout government. Forest area shrank by 8.6% between 2000-15.

National strategies and international co-operation for development

The “Plan Nacional de Desarrollo 2017-21 Toda una Vida” [National Development Plan 2017-21 A Lifetime] aims to develop a society oriented towards inclusive, equitable and supportive development. The plan is built around three main axes for ensuring rights for all: an economy at the service of society, a participatory society and a better state. The plan has two fundamental pillars: territorial development and environmental sustainability. It shows strong links with Sustainable Development Goal (SDG) 16 (peace, justice and institutions) and SDG 8 (decent jobs and economic growth) (ECLAC, 2018).

The economic axis presents a vision of a social and inclusive economy. This includes policies for channelling economic resources to the productive sector, incentivising long-term investments and promoting food sovereignty.

The human rights axis focuses on policies for promoting social and economic inclusion of the entire population. Among these, a reduction in the multidimensional poverty rate from 35.1% to 27.4% in 2021, the promotion of quality employment and a reduction of the infant mortality rate to 6.8 per 1 000 live births in 2021 stand out. In addition to this, the axis encourages improvement of public educational services with an intercultural focus and environmentally sustainable practices. Ecuador launched a national Multidimensional Poverty Index in 2016. It counts 12 indicators and 4 dimensions: education; work and social security; health, water and food; and habitat, housing and healthy environment.

The state-society axis focuses on the improvement of interactions between different societal actors. It includes policies for strengthening the democratic system and the capabilities of the Decentralised Autonomous Governments; the promotion of judicial security and technical defence of the state; and increasing the transparency of public and private administrations.

In terms of public financing capacities, Ecuador’s total tax revenues were 20.5% of GDP in 2016 (vs. 22.7% in LAC and 34.3% in the OECD). The country has been progressively incorporating new taxpayers into its e-invoicing framework since 2014. Ecuador is a recent signatory of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters to fight tax evasion.

Ecuador’s international co-operation priorities are aligned with the National Development Plan. The country channels the resources provided by non-reimbursable international co-operation through the Ecuadorian System of International Co-operation (Sistema Ecuatoriano de Cooperación Internacional in Spanish). Priority areas include obtaining resources for the 2017-21 National Development Plan; presenting Ecuador as a donor of South-South co-operation; channelling resources for indigenous populations, for Afroecuadorians, for the Montubio people and for women; and managing resources for the preservation of biodiversity.

Ecuador’s main traditional international co-operation partners are China, Germany, Italy, Japan, Korea and Spain. The main multilateral partners are the European Union and the UN system. The main South-South co-operation partners are Argentina, Chile and Brazil. Ecuador also receives support from South-South Triangular Co-operation projects involving Germany, as well as Spain through the Ibero-American Program for the Strengthening of South-South Co-operation (PIFCSS in Spanish). The National Agreement for Employment, Productive Investment, Innovation and Inclusion, for example, was financed by international co-operation resources.

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Key Indicators

Income and productivity

Ecuador

LAC [1]

OECD [2]

2007

2017

2007

2017

2007

2017

GDP per capita, PPP (constant 2011 international USD) [3]

8 880

10 582

12 603

12 970

38 972

39 586

Labour productivity relative to OECD (%) [4]

24.8

26.4

38.3

36.8

100

100

Households and NPISHs final consumption expenditure per capita (constant 2010 USD) [3]

2 756

3 088

4 305

5 491

22 098

20 441

2006

2016

2006

2016

2006

2016

Economic Complexity Index [5]

-1.0

-1.1

-0.3

-0.3

1.1

1.1

Ecuador

LAC

OECD

Average annual change in total factor productivity, 2000-17 (%) [6]

-0.2

-0.7

0.1

Social vulnerabilities

Ecuador

LAC

OECD

2007

2016

2007

2016

2007

2016

Share of people living in poverty, less than USD 5.50 a day (2011 PPP) (%) [7]

40.4

23.9

34.9

24.0

NA

NA

Share of people living in vulnerability, USD 5.50-13.00 a day (2011 PPP) (%) [7]

35.0

42.2

35.5

36.5

NA

NA

Life expectancy at birth (years) [3]

74.5

76.3

73.7

75.6

78.7

80.1

Mean years of schooling (population at 25 and older) [8]

7.9

9.0

7.4

8.6

11.0

11.8

Net enrolment rate, secondary level (%) [9]

56.1

87.2

66.6

74.4

78.7

90.3

2007

2017

2007

2017

2007

2017

Share of population that did not have enough money for food in past 12 months (%) [10]

36.0

54.0

34.8

44.3

12.0

13.0

Gini index [3]

53.3

45.0

50.8

46.2

32.7

36.5

Share of workers in vulnerable employment (% of total employment) [11]

41.5

45.2

32.6

31.0

12.8

12.6

Infant mortality rate (per 1 000 live births) [3]

17.9

12.5

19.4

14.7

7.9

5.7

2007

2015

2007

2015

2007

2015

Maternal mortality ratio (deaths per 100 000 live births) [3]

68.0

64.0

87.1

74.4

19.0

14.0

2009

2015

2009

2015

2009

2015

Mean PISA score in science performance [12]

NA

NA

406

412

501

493

2018

2018

2018

Social Institutions and Gender Index (SIGI) (%) [12]

28.9

24.6

17.3

Environment

Ecuador

LAC

OECD

Change in forest area, 2000-15 (%) [3]

-8.6

-1.2

0.8

2005

2016

2005

2016

2005

2016

PM2.5 air pollution, mean annual exposure (micrograms per cubic metre) [3]

19.4

13.2

24.7

20.3

15.1

14.9

2007

2014

2007

2014

2007

2014

CO2 emissions (kilograms per PPP USD of GDP) [3]

0.27

0.24

0.25

0.23

0.32

0.24

2007

2017

2007

2017

2007

2017

Share of population satisfied with air quality (%) [10]

68.0

76.0

74.0

73.2

74.0

79.0

Share of population satisfied with water quality (%) [10]

71.0

77.0

75.0

70.8

78.0

84.0

Institutions and perceptions about public services

Ecuador

LAC

OECD

2007

2016

2007

2016

2007

2016

Total tax revenue as a share of GDP (%) [12]

13.2

20.5

20.8

22.7

33.7

34.3

2006

2017

2006

2017

2006

2017

Share of population satisfied with the educational system (%) [10]

65.0

78.0

68.1

65.0

64.0

68.0

2007

2017

2007

2017

2007

2017

Share of population that believes in honesty in elections (%) [10]

30.0

53.0

36.9

34.9

53.0

60.0

Share of population that thinks corruption is widespread throughout government (%) [10]

74.0

65.0

72.9

74.5

60.0

54.0

Share of population with confidence in national government (%) [10]

47.0

64.0

40.9

36.1

41.0

45.0

Share of population satisfied with roads (%) [10]

61.0

69.0

54.4

53.4

61.0

66.0

Share of urban population satisfied with the availability of quality healthcare (%) [10]

51.0

59.0

55.5

49.9

69.0

69.0

Share of population satisfied with standard of living (%) [10]

72.0

75.0

68.6

69.3

73.0

77.0

Share of population that feels safe walking alone at night (%) [10]

43.0

54.0

46.8

46.2

61.0

72.0

2007

2015

2007

2015

2007

2015

Homicide rate (per 100 000 inhabitants) [3]

16.0

6.5

23.7

21.9

2.0

1.8

Sources, footnotes and technical details can be found at the end of the country notes.

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https://doi.org/10.1787/g2g9ff18-en

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Ecuador