After having recovered from the effects of the global crisis, Ecuador’s economy reached a robust growth in last years.  In 2012, 2013 and 2014 growth decelerated moderately yet it maintained strong with rates of 5.2%, 4.6% and 3.8%, respectively.

The government of President Rafael Correa Delgado—who was re-elected for a new 4-year mandate in February by an ample margin of votes —maintains the double priority of eradicating poverty and amending the productive matrix for changing, thus, the country’s productive structure and to generate an economy sustainable and diversified oriented to knowledge and innovation.  With this double priority, the public sector’s expense and investment have increased from 21% of the GDP in 2006 to 44% in 2013. A vast part of these resources was destined to both investment programs and projects in energy, infrastructure, and transportation, as well as in 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 2014, poverty measured by income (using the national poverty line) decreased from 37.6% to 22.5%, whilst extreme poverty was reduced from 16.9% to 7.7%.

In addition, the inequality reduction has been quicker than in the region’s average: The Gini’s coefficient was reduced from 54 to 48.7 between 2006 and June 2014, since growth benefitted more the poorest. Between 2000 and 2011 a more pronounced increase of the income took place in the two poorest quintiles. In fact, the income of the poorest 40% of the population increased in 8.8%, compared with the average 5.8% of the country.

Despite these remarkable outcomes, there is still a lot to be done to sustain and to enlarge the achievements reached in poverty reduction and inequality, as well as of the economic growth. These challenges are associated with the overreliance of the economy on the oil sector. In recent months, the sharp decline in oil prices and the appreciation of the U.S. dollar have severely affected the trade balance and the financing of public investment, as well as the competitiveness of Ecuadorian exports. In this context, consolidating the reduction in inequality and poverty poses a major challenge. This is especially critical given that despite a significant decline in recent years, poverty rates remain high, particularly in rural areas.


Last Updated: Apr 17, 2015

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).

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 15, 2015

Key achievements of recently concluded projects include:

Investments for the Development of Chimborazo

The project rehabilitated 55 irrigation systems, which benefited approximately 8,000 families. Users with good agricultural practices have increased their income by 30%, as compared with farmers who do not employ those practices.

Additionally, 50 kilometers of roads were improved, enabling access to health and education services and transport of agricultural production. This resulted in a 50% reduction in transport time and a 55% savings in the maintenance of vehicles traveling those roads.

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.

During the project, the CEPTED methodology (Crime Prevention through Environmental Design) was institutionalized in the municipality and staff members were trained in its use. This methodology aims to reduce crime through the design of safe spaces. To this end, two pilot projects were implemented. Additionally, a Plan to Reduce Seismic Risk with micro-zoning was developed.  Eight zonal contingency plans were prepared together with a district emergency plan.

Last Updated: Apr 17, 2015


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

*Amounts include IBRD and IDA commitments