The main industry sectors in Ecuador include oil, mining, food processing, textiles, metal work, paper products, wood products, chemical production, plastics, fishing, lumber, and tourism. Ecuador’s industrial growth has been hampered by high inflation, resulting in low GDP growth. The rising government control and interference have also contributed to the lack of foreign investments in Ecuador industries. The entrepreneurial environment has also been subject to strict regulatory guidelines. In addition, unfriendly labor regulations have been a barrier to hiring both domestic and overseas workers, thereby hindering industrial productivity and growth.
Ecuador Industries: Infrastructure
According to industry research, Ecuador’s construction sector languishes due to poor infrastructure and lack of investments. The construction industry was valued at $5.62 billion in 2009. The industry is projected to fall to $5.48 billion in 2010. However, with the commodity prices increasing, this sector is expected to reach $6.96 billion by 2014. The Inter-American Development Bank (IADB) in 2009 authorized a loan of $350 million in addition to $16.5 million provided by the government for developing the initial phase of a national road program. Ecuador is one of the riskiest countries in South America to begin a business. The country relies heavily on oil exports and had a fiscal deficit of -6% in 2009. Echoing the slump, the construction industry is expected to fall by 5.8% in 2010.
Ecuador Industries: Oil and Gas
Ecuador will account for 2.48% of Latin America’s regional oil demand by 2014, while providing 4.87% of the supplies. State-owned oil companies have collaborated with several international oil companies and delivered greater volumes of crude oil over the last few years. Crude production is expected to reach 520,000 b/d by 2014, from 495,000 b/d in 2010. Export capabilities are expected to reach 312,000 b/d by 2014. Between 2009 and 2019, Ecuador’s oil production, however, is expected to witness a decrease of 12.2% with crude volumes rising from an estimated 490,000b/d in 2009 to a 2014 peak of 525,000b/d, before falling to 430,000b/d by the end of the 10-year forecast period.