Latin American Economic Outlook 2025

Ecuador

Promoting and financing production transformation

Regarding policies for production transformation, Ecuador has adopted the Plan de Desarrollo para el Nuevo Ecuador 2024-2025, which outlines the national development strategy around five pillars. Notably, the economic pillar aims to promote sustainable production with increased productivity, competitiveness and added value, while the infrastructure pillar aims to strengthen digital connectivity. The Agenda de Transformación Digital del Ecuador 2022-2025 presents further actions to foster digitisation. These include building skills and innovation in science and technology (Pillar 5: Digital Culture); fostering the digitalisation of micro, small and medium-sized enterprises and supporting the creation of technology clusters (Pillar 6: Digital Transformation of the Productive Structure); and promoting research and innovation (R&I) and knowledge transfers (Pillar 8: Promotion of New Technologies in Industries). In addition, the Estrategia Nacional de Economía Circular Inclusiva 2025-2035 has the aim of developing a circular economy based on principles such as environmental responsibility, digital transformation, a just transition and R&I. The country’s Premium & Sustainable Strategy, which aims to transform Ecuador’s agro-industrial production into a global benchmark of sustainability and productivity by 2030, is also noteworthy.

Regarding public financing mechanisms for production transformation, the most relevant funds come from the state budget (Presupuesto General del Estado) and public banking institutions. State budget allocations are guided by the Plan de Desarrollo, which earmarked more than USD 220 million for 2024‑2025 to foster productivity in sustainable industries and USD 330 million to promote connectivity as a driver of economic growth. These resources are channelled to a substantial degree through public banks, including BanEcuador, Corporación Financiera Nacional, Corporación Nacional de Finanzas Populares y Solidarias (Conafips) and Banco de Desarrollo del Ecuador (BDE); these banks provide tailored financing instruments for enterprises. The BDE supports projects focused on technological development, while Conafips offers credit lines for environmentally efficient businesses, such as Financiamiento Cambio Climático and Crédito Verde. Additionally, the Inter-American Development Bank (IDB) allocated USD 500 million in 2023 to support the decarbonisation of Ecuador’s energy sector.

In terms of international partnerships for production transformation, the Regional Fund for Triangular Co‑operation, established with Chile and Germany and financed by the German Federal Ministry for Economic Co‑operation and Development, promotes sustainability and productivity in agribusiness. In addition, the Inter-American Institute for Co‑operation on Agriculture plans to invest USD 30 million between 2025 and 2026 in projects aimed at decarbonising agriculture. Since 2020, a partnership with the IDB has financed the development of food technology to enhance productivity and research in the sector. Finally, the European Union’s Multiannual Indicative Programme 2021-24, totalling USD 46 million, targets sustainable trade, green productivity and innovation in Ecuador in particular.

Ecuador: Key indicators

		Ecuador						LAC						OECD
Social development		2016			2023			2016			2023			2016			2022
Poverty	Extreme poverty	24.3		8	24.7		7.1	25.8		8	22.5		7	N/A			N/A
Gini index		45			44.6			46.3			40.9			33.9			34.5
Share of total population in informal households (%)		N/A			N/A			47.9 (2009)			42.3			N/A			N/A
Share of total population in mixed households (%)		N/A			N/A			23.2 (2009)			24.0			N/A			N/A
Social Institutions & Gender Index (SIGI)		28.9 (2019)			17			25.4 (2019)			21.2			17.5 (2019)			15.3 (2023)
PISA score in science		N/A			N/A			411 (2015)			408 (2022)			489 (2015)			485
Productivity and innovation		2016			2023			2016			2023			2016			2023
Export complexity (position on a global scale where 1 is most complex economy)		129			126			81.5			89			40.6			44.6
Labour productivity (% of OECD)		29			29 (2024)			42			40 (2024)			100			100
High-tech exports (% of manufactured exports)		9.2			7.27			8.5			8			16.5			18.1
Patent applications per million people		2.7			2 (2021)			13.8			12.8 (2021)			631.2			572.8 (2021)
R&D expenditures (% of GDP)		N/A			N/A			0.3			0.3 (2022)			1.8			2.1 (2022)
Investment and private financing		2016			2024			2016			2024			2016			2024
Total investment, gross fixed capital formation (% of GDP)		20.7			18.4			20.7			19.8			21.9			21.7
Foreign direct investment (FDI), net capital inflow (% of GDP)		0.8			0.3			4.3			4.3			N/A			N/A
Domestic credit to private sector (% of GDP)		29.4			56.2			45.2			44.1			86.8			71.7
Market capitalisation (% of GDP)		N/A			N/A			50.2 (2019)			37.3			69.5 (2019)			66.4
Citizens’ perceptions and institutions		2011			2024			2011			2024			2011			2024
Satisfaction with educational system (% of population)		75			68			67			67			66			65
Satisfaction with healthcare system (% of population)		56			43			55			54			70			64
Share of people satisfied with their standard of living (%)		70			75			70			73			73			77
Confidence in judicial system (% of population)		26			24			33			38			50			56
Corruption Perception Index (score on a scale of 0 [highly corrupt] to 100 [totally clean])		31 (2016)			32			41.2 (2016)			40.6			67.3 (2016)			66.79
Tax morale (% of adults who find some degree of justification in evading taxes)		53.5			53.6 (2023)			50.6			55.3 (2023)			N/A			N/A
Security risks indicator (score from 0 [low security risks] to 10 [high security risks])		6.5 (2016)			6.1			5.9 (2016)			5.3			2.8 (2016)			2.2
Digital and green transition		2016			2023			2016			2023			2016			2023
Share of internet users (% of population)		54.1			77.2 (2024)			54.5			77.7			81.8			91.8
Fixed broadband subscriptions (per 100 inhabitants)		9.8			16.1			11.2			17			30.6			36
Environmentally related tax revenue (% of GDP)		0.4			0.3 (2022)			1			0.7			1.7			1.3
Per capita greenhouse gas emissions (excluding land use changes) (t co2e/capita)		4.4			4.1			5.3			4.9			10.7			8.7
Renewable energy consumption (% of total final energy consumption)		14.8			18.9 (2021)			28.9			33.9 (2021)			12.5			14.9 (2021)
Fiscal position		2016			2023			2016			2023			2016			2023
Total tax revenues (% of GDP)		19.9			20.6			20.9			21.3			33.5			33.9
Share of VAT I PIT I CIT		6	N/A	N/A	6.8	N/A	N/A	5.9	2	3	6.0	2.0	3.9	6.6	7.8	2.9	7.0 (2022)	8.2 (2022)	3.9 (2022)
Public debt service (% of total tax revenue)		7.7			4.2			11.3			13.5			5.4			4
Social expenditure (% of GDP)		9			11.3			11			11.5			20.2			21.2 (2024)

Note: See the Reader’s guide for definitions and sources.