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Introduction to Ecuador's Economy
Its strategic location means that many investors and businessmen of the 21st century come to Quito. From the middle of the world the country opens it doors to commercial and cultural exchange.
Important Cities
With a well-developed tourist infrastructure, Ecuador’s major cities offer lodging in the world’s best international hotel chains and dining in some of Latin America’s finest restaurants. Quito is the political heart of Ecuador, Guayaquil the financial pulse and principle port, Cuenca the cultural soul, and Manta an important seaside port city.
Production and Industry
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, it was not until the seventies, when exploration was begun in the Amazon region, that oil production began, turning Ecuador into one of the world’s most important exporters of this natural resource. 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 gas reserves of 300,000 million cubic feet in the Gulf of Guayaquil. Tourism is Ecuador’s fourth most important export in terms 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 the development of industry by means of the Ley de Fomento Industrial. The main purpose of the Law is to encourage international investment in Ecuador. In addition, to large industries such timber and textile, the Ecuadorian economy is also powered by small industries such as the production of handicrafts, a group of products which Ecuador produces in abundance, suiting the needs of consumers worldwide.
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