By Donna Welles.
Ecuador is the only country in South America to use the $USD as its national currency. Ecuador has also experienced the most dramatic growth in GDP since 2000, 415% GDP growth. Allow us to examine Ecuador’s economy using the following indicators, (1) Trading Partners, (2) Total Trade between the People’s Republic of China and the United States, (3) Net Migration, and (4) Vulnerability Indicators.
Trading Partners take two forms, South American neighbors and Imperial powers from abroad. Arguably, the United States is both of these in that it is located in the North American continent. From 1990-2014, the United States and the People’s Republic of China were Ecuador’s top trading partners.
Ecuador’s top five trading partners for the years 1990 and 2014 are as follows,
1990: United States, PRC, Japan, Germany, Peru.
2014: United States, PRC, Colombia, Chile, Peru.
Ecuador’s trading partners ranked sixth through tenth for the years 1990 and 2014 are as follows,
1990: Panama, Brazil, Italy, Spain, Chile.
2014: Panama, Mexico, Japan, Germany, Spain.
These lists show that Germany and Japan dropped out of the top five over the past quarter century and they were replaced with South American neighbors, Colombia and Chile.
Other Imperial notables include Spain, the Netherlands, and the United Kingdom. While Spain and the Netherlands remained in the top fifteen in both 1990 and 2014, the United Kingdom dropped from fourteenth to twentieth.
Today, three countries in South America trade more with the People’s Republic of China than they do with the United States; these are Brazil, Chile, and Uruguay. Ecuador’s Total Trade with the United States greatly exceeds that with the People’s Republic of China. According to the World Bank, Ecuador’s combined Imports and Exports to the People’s Republic of China in 2014 totaled $4.3 billion in 2014, whereas those to the United States totaled $19 billion.
Other South American countries trade similarly with the United States and the PRC. Specifically, Peru’s Total Trade with the United States is $15.3 billion and with the PRC is $14.2 billion. Argentina’s Total Trade with the United States is $14 billion and with the PRC is $12.9 billion.
Fewer people are leaving Ecuador, but the World Bank still reports a negative net migration figure as of 2012. In 2002, the figure was -43,463. In 2007, the figure was -46,470. And, in 2012, the figure was -30,000 people.
Only Chile and Venezuela have positive net migration figures in the South American continent. Ecuador’s numbers are similar to that of Guyana and Uruguay. Guyana’s figure has stayed steady since 2002 whereas fewer people are leaving Uruguay.
If a country’s Imports figure grows too quickly, it is vulnerable to debt. Ecuador’s Imports doubled three times since 1990, although its GDP doubled twice; therefore it is vulnerable to debt. Argentina also doubled its Imports three times in that timeframe but its GDP only doubled twice. Peru doubled both its Exports and Imports three times but its GDP only doubled twice. Finally, Bolivia doubled its Exports three times, but its GDP only doubled twice. Only Suriname doubled its GDP three times between 1990 and 2013 as reported by the World Bank.
