Country Office Contacts
ECUADOR +5932 294-3600

Calle 12 de Octubre 1830 y Cordero, World Trade Center, Torre B, piso 13. Quito
cmedina1@worldbank.org

USA +1 202 473-1000

1818 H Street NW, Washington, DC 20433
cmedina1@worldbank.org

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Ecuador Overview

Beginning in 2010, the Ecuadorian economy began to recover from the effects of the global crisis, with a growth rate of 3.5%, reaching 7.8% in 2011 (the third highest rate in the region). Economic growth remained robust in 2012, with a growth rate of 5.1%. Growth remained strong through the third quarter of 2013, at an annual rate of 4.9%.

The government administration of President Rafael Correa Delgado—who was re-elected to another four-year term in February 2013 by a wide margin – has maintained the dual goals of strengthening the productive base and eradicating poverty. To this end, public investment has increased, from 21% of GDP in 2006 to nearly 41% in 2012.  A large share of resources is allocated to programs and projects for investment in infrastructure and social sectors.

Economic growth in Ecuador has been inclusive, which has directly reduced poverty and inequality levels and increased the middle class. Between 2006 and 2013, income poverty (using the national poverty line) fell from 37.6% to 25.5% whereas extreme poverty declined from 16.9% to 8.6%.

Moreover, inequality in Ecuador decreased faster than the average for the region: the Gini coefficient fell from 54 to 48.5 between 2006 and 2013 whereas the middle class increased from 20% to 26% of the total population between 2006 and 2009.  This is because income growth most benefitted the poorest citizens: between 2000 and 2011, the highest growth in income occurred in the poorest two quintiles of the population. Income of the poorest 40% of the population rose 8.8% compared with 5.8% for the average for the total population.

Despite these positive results, significant challenges remain in terms of the sustainability of these achievements in reducing poverty and inequality and in ensuring sustainable, inclusive growth. More than half of the Ecuadorian population continues to live in poverty or is vulnerable to again falling below the poverty line. Targeted public investments still largely depend on the oil sector.

Last Updated: Apr 10, 2014

In Ecuador, the World Bank finances a US$ 305 million portfolio of several projects in infrastructure, irrigation, transport and water and sanitation. Additionally, the Bank supports different government agencies in social and environmental issues through grants and technical assistance. These projects include:

The Manta Public Services Improvement Project seeks to support the municipality in improving the quality and sustainability of public water, sanitation and urban transport services by improving the water system in certain districts, repairing connections and sewage systems and expanding household connections. Additionally, it works to improve urban roads through paving and the construction and/or improvement of sidewalks.

The Quito Metro Line One Project  works to improve urban transport in Quito to respond to the growing demand for public transport. The metro will reduce travel times, lower transport service operating costs, improve connectivity, safety and convenience of the current system, as well as reduce pollutants and greenhouse gas emissions. This project is implemented jointly with the Inter-American Development Bank, the European Investment Bank and the Andean Development Corporation (CAF).

In its final phase, the Chimborazo Development Investment Project is supporting production and market access of rural families living in the Chambo and Chanchan-Chimbo river basins in Chimborazo Province through investments in irrigation and road improvement.

The Growing with Our Guaguas (Children) grant is implemented in 10 cantons of Chimborazo Province. The goal is to contribute to reducing chronic malnutrition among children under age five by improving the understanding and expectations of families and communities with respect to the adequate growth of children and the empowerment of parents to access basic health care services.  The project’s innovative focus includes information and communication technologies (ICTs) as tools for disseminating relevant information to beneficiaries through SMS.

Last Updated: Apr 10, 2014

Key achievements of recently concluded projects include:

Quito Risk Reduction Program

The program objective was to build institutional and citizen capacities for risk management through the commitment of the municipality, the academic sector, community-based organizations and strategic private-sector partnerships. The program focused on managing natural and technological risks, as well as violence prevention and road safety issues.

Public Sector Financial Management Project  (SIGEF)

The objective of the SIGEF Project was to increase the effectiveness of financial management through greater transparency, efficiency and savings. The creation of a single treasury account was a significant reform that enhanced the positive impacts of the new system.

Last Updated: Apr 10, 2014

LENDING

Ecuador: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments

Around The Bank Group

Find out what the Bank Group's branches are doing in Ecuador.