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Ecuador: Market Profile

Picture: Ecuador factsheet
Picture: Ecuador factsheet

1. Overview

Ecuador is highly dependent on its hydrocarbon resources, which generally account for more than half of the country's export earnings. In March 2000, Congress approved a series of structural reforms that provided for the adoption of the United States dollar as legal currency. Dollarisation stabilised the economy and positive growth occurred in the following years mainly because of high oil prices and increased non-traditional exports. Thanks to the boom in oil prices between 2007 and 2014, Ecuador experienced a period of growth and poverty reduction, however lower-for-longer oil prices in the quarters ahead do not bode well for the country’s under-diversified economy. In 2019, the IMF granted Ecuador a USD4.2 billion loan to aid further economic restructuring efforts under the 'Ley Fomento Productivo' – the current economic plan under President Lenín Moreno.

Sources: World Bank, Fitch Solutions, IMF

2. Major Economic/Political Events and Upcoming Elections

December 2015
President Rafael Correa abolished term limits for the office of the presidency.

April 2016
Ecuador is located on a volcanic zone within the Pacific Ring of Fire, resulting in permanent threat of eruption and earthquake. In April 2016, the country was hit with a 7.8-magnitude earthquake, resulting in the death of 400 people and the loss of an estimated USD3 billion.

May 2017
The candidate nominated by Correa's Alianza País party, Lenín Moreno, was elected as president.

February 2018
President Moreno held a national referendum on six issues, including a decision to overturn the abolition of term limits for the president. The public provided overwhelming support for all of the issues on the referendum, resulting in (among others) the reinstatement of term limits for the office of the president.

March 2019
The IMF announced a USD4.2 billion loan for Ecuador, releasing USD652 million upon the announcement. The funds have been earmarked for support of the Ecuadorean government’s economic policies out to 2021.

October 2019
The Ecuadorian government restored fuel subsidies in a deal with indigenous leaders.

Sources: BBC Country Profile – Timeline, Fitch Solutions

3. Major Economic Indicators

Graph: Ecuador real GDP and inflation
Graph: Ecuador real GDP and inflation
Graph: Ecuador GDP by sector (2018)
Graph: Ecuador GDP by sector (2018)
Graph: Ecuador unemployment rate
Graph: Ecuador unemployment rate
Graph: Ecuador current account balance
Graph: Ecuador current account balance

f = forecast
Sources: IMF, World Bank, Fitch Solutions
Date last reviewed: November 11, 2019

4. External Trade

4.1 Merchandise Trade

Graph: Ecuador merchandise trade
Graph: Ecuador merchandise trade

Source: WTO
Date last reviewed: November 11, 2019

Graph: Ecuador major export commodities (2018)
Note: Unclassified products are not included in the chart as they account for less than 1% of exports
Graph: Ecuador major export commodities (2018)
Note: Unclassified products are not included in the chart as they account for less than 1% of exports
Graph: Ecuador major export markets (2018)
Graph: Ecuador major export markets (2018)
Graph: Ecuador major import commodities (2018)
Note: Unclassified products are not included in the chart as they account for less than 1% of exports
Graph: Ecuador major import commodities (2018)
Note: Unclassified products are not included in the chart as they account for less than 1% of exports
Graph: Ecuador major import markets (2018)
Graph: Ecuador major import markets (2018)

Sources: Trade Map, Fitch Solutions
Date last reviewed: November 11, 2019

4.2 Trade in Services

Graph: Ecuador trade in services
Graph: Ecuador trade in services

Source: WTO
Date last reviewed: November 11, 2019

5. Trade Policies

  • Ecuador has been a World Trade Organization (WTO) member since January 21, 1996.

  • Despite the sharp fall in their prices, mineral products – and oil in particular – are Ecuador's main export goods. In 2018, they accounted for some 41.8% of total goods exports, a 5.1% increase since 2017. Although food and agricultural products represent 50.5% of all goods exports from Ecuador, the sector is much more diversified. Bananas and crustaceans – mainly shrimp – are the two biggest agricultural and food exports in Ecuador, followed by cocoa and cocoa products, and meat and seafood.

  • Although Ecuador is a major oil producer, it lacks the refining capacity to meet domestic demand for refined products and imports oil derivatives: chemical, industrial and fuel products accounted for 33.2% of total imports in 2018. Mineral products – such as refined fuel – represented 19.7% of all imports in the same time period. Machinery and complex manufactured products made up the second-largest category of goods imported by Ecuador in 2018, accounting for an estimated 32.4% of all goods entering the country.

  • Ecuador's constitution outlines that the state has sole control of 'strategic' sectors, including: energy in all its forms, telecommunications, non-renewable natural resources, transport and refining of hydrocarbons, biodiversity and genetic heritage, the radio spectrum and water.

  • Ecuador participates in multilateral trading systems, where economic interaction between entities are fair and inclusive. Ecuador's stance on multilateral trade is that any outcomes from engagement with international or regional trade should prioritise development and to take into account flexibilities for developing least developed countries.

  • Ecuador is a member of the Andean Community (CAN) and the Latin American Integration Association (LAIA).

  • Ecuador has yet to submit the ratified Agreement on Trade Facilitation – agreed upon at the 2013 Bali Ministerial Conference among WTO member states. The agreement contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues; it further contains provisions for technical assistance and capacity building in this area. The WTO notes, however, that Ecuador has taken proactive steps towards facilitating cross-border trade, such as introducing an electronic customs system, ECUAPASS and the Ecuadorian Single Window (VUE) in 2018.

  • Ecuador is not a party to the WTO Agreement on Government Procurement and does not participate as an observer in the Committee on Government Procurement.

  • As of 2019, Ecuador has banned the export of aluminium and copper wastes and scraps.

  • The government has banned the import of air conditioning equipment (as of 2013) and the import of incandescent light bulbs (as of 2010).

  • Since Ecuador is a member of the CAN, goods to be imported are classified under the Common Nomenclature of the Andean Countries participating in the Cartagena’s Agreement (NANDINA) Pact, which is based on the Customs Cooperation Council Nomenclature (also known as the Brussels tariff nomenclature). Most consumer goods imports pay 25%, while intermediate goods are usually imported at a 10% or 15% rate. Raw materials and capital goods generally pay 0% to 5%. Ecuador has negotiated exceptions under the Andean common tariff that allow lower duties on certain capital goods and industrial inputs. There is duty-free import of agricultural goods and equipment.

  • In addition to import duties, all imports are subject to 12% VAT and other minor taxes that do not exceed 1%. Charges are based on the cost, insurance and freight (CIF) value of the merchandise.

  • All Ecuadorian imports and exports are subject to inspection by authorised international verification companies operating in the country (there are some imports exempt from verification). Goods are appraised for value, quantity, quality, and weight at the port of origin.

  • A Special consumption tax (Impuesto a los Consumos Especiales or ICE) is imposed on domestic and imported goods that are explicitly listed in the law, including sugared, non-alcoholic and carbonated drinks. This tax is levied at a progressive rate from 5% to 35% on certain automobiles and 15% on airplanes, helicopters, and boats. The taxable basis on cigarettes and alcoholic beverages is obtained by the number of produced or imported cigarettes or degrees of alcohol, respectively.

  • Since 2017, a commercial agreement between the European Union (EU) and Ecuador in place, which provides relief on duties upon the importation of certain goods.

Sources: WTO – Trade Policy Review, Fitch Solutions

6. Trade Agreement

6.1 Multinational Trade Agreements

Active

  1. The CAN: The community – which came into existence in 1969 – comprises Peru, Colombia, Ecuador and Bolivia. CAN is a Free Trade Area (FTA) with the goal of eventually becoming a customs union. At present, however, trade between members remains unencumbered by tariffs and other formal measures of trade protection. CAN also provides its members with improved bargaining power, given the collective nature of the organisation. The community also promotes the free movement of people, with residents from member states not requiring a visa. 12.4% of all imports originate in fellow CAN members, with 11.5% of all Ecuadorean exports destined for Peru, Colombia and Bolivia.

  2. EU-CAN: In January 2017, CAN ratified a Free Trade Agreement (FTA) and Economic Integration Agreement with the EU. The agreement eliminates tariffs for all industrial and fisheries products, increases market access for agricultural products, improves access to public procurement and services and further reduces technical barriers to trade. The agreement allows Ecuador to benefit from improved access for its main exports to the EU, such as fish and fish products, cut flowers, coffee, cocoa, fruits and nuts. Bananas also benefit from a preferential rate, but a stabilisation mechanism is in place that allows the Commission to examine and consider the suspension of preferences if an annual threshold is reached, as is currently the case for trade deals with Colombia, Peru and Central America. The FTA also includes commitments to effectively implement international conventions on labour rights and environmental protection, which are monitored with the systematic involvement of civil society. The EU accounts for 14.0% of all Ecuadorean trade.

  3. Southern Common Market-CAN (Mercosur-CAN): As a member of the CAN, Ecuador is party to commercial agreements with Mercosur (Brazil, Argentina, Paraguay and Uruguay). Mercosur member states present greater economic opportunities for firms in Ecuador and the Agreement brings about greater economic integration. This supports the FTA of the Americas - an agreement that reduces the trade barriers among all countries in Latin America.

  4. Ecuador-Chile: The Economic Complementation Agreement Chile - Ecuador was signed under the 1980 Montevideo Treaty, which created the Latin American Integration Association. The treaty created an economic space that allows for the free movement of goods, services and factors of production and strengthens political dialogue and cooperation. The agreed-upon rules cover matters such as the tariff reduction programme, unfair trade practices, safeguards, technical standards, scientific and technological cooperation, sanitary and phytosanitary standards, maritime and air transport, dispute resolution, automotive and government procurement, among others. Trade with Chile accounts for 4.5% of all trade.

  5. Ecuador-Mexico: Mexico is Ecuador's sixth largest import partner. As of 2018, Ecuador received 3.5% of all its imports from Mexico, of which vehicles and vehicle parts made up the highest percentage.

  6. Ecuador-Guatemala: Guatemala is Ecuador's 38th largest import partner. As of 2018, Ecuador received 0.2% of all its imports from Guatemala, of which residues and waste from food industries and prepared animal fodder made up the highest percentage.

  7. Ecuador-El Salvador: The bilateral Partial Scope Agreement came into force in November 2017 and covers trade in goods. El Salvador is Ecuador's 28th largest export partner, and as of 2018, Ecuador exported 0.4% of its total exports to El Salvador. The majority of these exports were mineral fuels, mineral oils and products of their distillation.

Sources: WTO Regional Trade Agreements database, Fitch Solutions

7. Investment Policy

7.1 Foreign Direct Investment

Graph: Ecuador FDI stock
Graph: Ecuador FDI stock
Note: Outward FDI data is not longer available from UNCTAD
Graph: Ecuador FDI flow

Graph: Ecuador FDI flow

Note: Outward FDI data is no longer available from UNCTAD
Sources: UNCTAD
Date last reviewed: November 11, 2019

7.2 Foreign Direct Investment Policy

  1. Invest Ecuador is the Ecuadorian platform for investment projects throughout the country and all strategic sectors.

  2. Ecuador's Constitution stipulates that the State reserves the right to administer, regulate, monitor and manage strategic sectors – namely: energy in all its forms, telecommunications, non-renewable natural resources, transport and refining of hydrocarbons, biodiversity and genetic heritage, the radio spectrum and water. In these sectors, foreign investment cannot constitute the majority of ownership and must be made in addition to national investment (investment by government, usually in the form of a partnership).

  3. In 2019, Ecuador made registering property easier by reducing the time required to transfer property and by increasing the transparency of the land administration system.

  4. No local or provincial government taxes on income are imposed on companies.

  5. Beyond the list of strategic sectors, there are no restrictions on foreign investment and foreign investors must undergo the same procedures and obtain the same authorisations as Ecuadoreans.

  6. Ecuador grants general tax incentives for investments in any part of the country. The country also grants sectoral incentives for:

    • New businesses which are set up in priority sectors
    • Investments in 'depressed areas'
    • Public projects implemented by public-private partnerships (implemented in 2015)

  7. The government also applies an incentives regime for Special Economic Development Zones (ZEDEs), which are customs destinations in delimited zones in the national territory. Goods produced in the ZEDEs should, inter alia, contribute to diversifying the domestic supply for export, and be specifically export-oriented. However, they may be authorized for sale on the domestic market in limited percentages, depending on the product.

  8. In order to improve the country's attractiveness for FDI, the government passed the Productive Promotion and Attraction of Foreign Investment Law in August 2018. The law introduces a number of tax incentives for both new and existing businesses. The relevant tax incentives require that:

    • The productive investment must be understood as being irrespective to the type of property
    • The investment aids in the expansion of productive capacity
    • The investment promotes the generation of new sources of employment in the national economy

    The benefits outlined by the law consist of a 12-year income tax and provide exoneration for any new productive investments realised in the following sectors:

    • Agriculture; the production of fresh, frozen and industrialised foods
    • Forest and agroforestry chain and its processed products
    • Metalworking
    • Petrochemistry and oleochemistry
    • Pharmaceuticals
    • Tourism, cinematography and audio-visuals
    • International events
    • Renewable energies, including bioenergy or energy from biomass
    • Logistics services for foreign trade
    • Applied biotechnology and software
    • Exportation of services
    • Development and software services, production and development of technological hardware, digital infrastructure, computer security, products and digital content, and online services
    • Energy efficiency services companies
    • Sustainable construction materials and technology industries
    • The industrial, agroindustrial and agro-social sector

  9. Investments made under the Productive Promotion and Attraction of Foreign Investment Law which fall outside of Quito or Guayaquil are subject to reduced exemption periods of 8 years.

  10. Investments made under the Productive Promotion and Attraction of Foreign Investment Law which fall within ZEDEs are subject to an increased exemption period of 15 years.

  11. New investments in the following industries are entitled to the exemption of income tax for 15 years:

    • Casting and refining of copper and/or aluminium
    • Steel foundry for the production of flat steel
    • Refining of hydrocarbons
    • Petrochemical industry
    • Cellulose industry
    • Construction and repair of naval vessels

  12. Under President Rafael Correa, Ecuador’s National Assembly decided to terminate all of its BITs with Argentina, Bolivia, Canada, Mainland China, Chile, Italy, the Netherlands, Peru, Spain, Sweden, Switzerland, the US and Venezuela. An ad-hoc body – the Investment Treaties Audit Commission – had come to the conclusion that the various bilateral treaties which Ecuador had entered into had 'not brought benefits to the country', but had brought risks and costs instead. Under Correa's successor, Lenín Moreno, the government of Ecuador is seeking to renegotiate and resurrect a number of these agreements. At present, Ecuador is only party to three active bilateral investment treaties, with: Italy, Spain and the Netherlands.

  13. The tax base for the foreign assets tax is the average monthly balance of cash deposits held in foreign entities by private entities registered in the stock market and regulated by the Superintendent of Banks and Companies. The monthly tax rate is 0.25% (0.35% for assets held in tax haven jurisdictions).

  14. Remittance tax of 5% is imposed on the transfer of money abroad in cash or through pay checks, transfers, or courier of any nature carried out with or without the mediation of the Ecuadorian financial system, including transfer from foreign bank accounts. Dividends are exempt from this tax, under certain considerations.

  15. Although it is not considered a tax, companies are obligated to pay 15% of their pre-tax earnings to their employees. This payment is considered a deductible expense for corporate income tax (CIT) computation purposes.

Sources: WTO – Trade Policy Review, the International Trade Administration, US Department of Commerce

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive ProgrammeMain Incentives Available
Free Trade Zones (FTZs) – ZEDEs/FTZs: Esmeraldas Duty Free Zone, Cuenca Duty Free Zone, Ecuador Duty Free Zone, El Oro Duty Free Zone, Guayas Duty Free Zone, Manabí Duty Free Zone, Manta Duty Free Zone, Quito Duty Free Zone
- Imports and exports for businesses located within the FTZ are exempt from taxes.

- No corporate profit tax is applicable in these zones.

- Businesses are also exempt from value-added tax and provincial/municipal taxes.

- Various businesses can be located within an FTZ, including industrial, commercial and travel companies.

- ZEDEs are exempt from the currency outflow tax.

- Streamlined bureaucratic procedures.

- Exemption from the payment of all taxes related to the use of patents and trademarks.

- Free exchange in all transactions made within the FTZ.

- Free repatriation of capital earned and exemption from the payment of the transference of technologies.

- The USD is used as local currency.
Tax credit on remittances5% remittance tax paid on imports of raw materials and goods (as delineated by the Tax Policy Board) and which are used in productive activities, can be used as a tax credit for CIT.
Pro-environment deductionsDeductions on CIT can be applicable to investments in environmental-friendly assets.
Employee hiring incentives (handicapped and new employees)- Handicapped and new employees may provide a business with a tax deduction (on CIT) ranging between 100% and 150% of the employee's remuneration.

- New employees must be employed by the company for at least six months.

- The deduction granted by the employment of handicapped employees only applies to those hired above and beyond the quota of handicapped employees within Ecuador.

Source: Fitch Solutions

8. Taxation – 2019

  • Value Added Tax: 12%
  • Corporate Income Tax: 25%

Sources: Servicio de Rentas Internas, Ministerio de Finanzas

8.1 Important Updates to Taxation Information

In December 2017, the Ecuadorian government enacted the Law for the Reactivation of the Economy. The main corporate tax measures derived from this Law, effective for 2018, include: An increase in the CIT rate from 22% to 25%, and from 25% to 28% for companies with foreign shareholders located in jurisdictions qualified as tax havens. There are also exemptions and benefits for small business and companies qualified as usual exporters. In addition there are limitations to the deduction of expenses related to accruals of employer's pension and eviction plans.

In August 2018, the Ecuadorian government enacted the Law for the Incentive of Production, Attraction of Investments, Generation of Employment and Fiscal Stability. The main corporate tax measures and reforms are:

  • An amnesty programme on interests and fines before Tax and Social Security Authorities, among other regulatory entities, available until December 28, 2018.
  • Exemptions of CIT and remittance tax for new investments.
  • Regulations for the determination of the CIT rate applicable from 2019.
  • Withholding exemption on dividend distribution.
  • Reforms on capital gains tax, value-added tax (VAT), and remittance tax, among others.

8.2 Business Taxes

Type of TaxTax Rate and Base
CITRanges between 22% to 28% rate. The general CIT rate is 25%; however, a 28% rate should apply if non-resident shareholders are located in a tax haven jurisdiction and additionally there is an Ecuadorian individual shareholder in the ownership structure. Such increase is also applicable when the company's ownership structure is not duly disclosed before the Ecuadorian tax authorities.
Branch Tax- 22%-28% on distributed or undistributed profits
- 12%-18% on reinvested profits
Capital Gains Tax25% (capital gains are treated as ordinary income)
Withholding TaxesThe following withholding tax rates apply (residents/non-residents)

Dividend Income: 0%/0-35%
Interest: 2%/0-25%
Royalties: 8%/8%

Interest rates for locally-based companies: 0-2%
VAT

Levied at the rates of either 12% or 0% on the transfer of goods, import of goods, and the rendering of services, as well as on services rendered within the country or imported. Royalties and intangible property, imported or locally paid, are also levied with a 12% VAT.

Social Security ContributionsEmployers and employees pay contributions to the Social Security at the rates of 12.15% and 9.45%, respectively, on the minimum monthly taxable wages as established for the different contributing categories. These categories are revised annually.

Sources: Servicio de Rentas Internas, Ministerio de Finanzas
Date last reviewed: November 6, 2019

9. Foreign Worker Requirements

9.1 Localisation Requirements

In theory, with the introduction of the Human Mobility Law, the quota restricting the number of foreign workers has been removed. However, the Ministry of Labour sets a cap of 20% with regard to foreign employees. As such, at least 80% of a workforce must be sourced locally and be comprised of Ecuadorian nationals.

The law requires at least one medical examination prior to employment and one when the employment relationship is over. Based on certain regulatory requirements, and depending on the type of job, medical examinations will be required from time to time. The law states that when an employer from either the public or private sector has more than 25 employees, at least 4% of the workforce must be disabled people or individuals who take care of disabled persons.

9.2 Visa/Travel Restrictions

All foreigners intending to work in Ecuador must obtain either a temporary or permanent residence visa. A work visa is not needed for a residency visa. A Permanent Residence Visas may be applied for after holding the temporary residency visa for 21 months. The holder of a temporary residency visa may not travel abroad for more than 180 days across two years, 90 consecutive days, or 90 days in one calendar year. Permanent residency visas have gradually lower travel restrictions applied to them. An applicant may register with the Ecuadorean Institute for Social Security (the IESS) after obtaining a residency visa (temporary or permanent) or opt for private health insurance. A number of visas (applicable in addition to the residency visa) may apply to foreigners wishing to work in the country. A general work visa may be obtained either prior or after entering the country on a residency visa and require the contract of employment to be registered with the Ministry of Labour, as well as providing certification from the company in question indicating a lack of debts owed to the IESS, the SRI (Internal Revenue Service), or the superintendence of Companies.

Sources: Ecuador Ministry of Labour, Fitch Solutions

10. Risks

10.1 Sovereign Credit Ratings


Rating (Outlook)Rating Date
Moody's
B3 (Negative)
12/12/2018
Standard & Poor'sB- (Stable)
29/06/2017
Fitch Ratings
B- (Stable)21/08/2019

Sources: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators


World Ranking
201820192020
Ease of Doing Business Index
118/190123/190129/190
Ease of Paying Taxes Index
145/190143/190147/190
Logistics Performance Index
62/160N/AN/A
Corruption Perception Index
114/180N/AN/A
IMD World CompetitivenessN/AN/AN/A

Sources: World Bank, IMD, Transparency International

10.3 Fitch Solutions Risk Indices


World Ranking
201720182019
Economic Risk Index RankN/A67/20282/201
Short-Term Economic Risk Score
555646.9
Long-Term Economic Risk Score57.759.055.5
Political Risk Index RankN/A159/202159/201
Short-Term Political Risk Score
52.551.351.3
Long-Term Political Risk Score50.149.149.1
Operational Risk Index RankN/A118/201117/201
Operational Risk Score47.945.646.2

Source: Fitch Solutions
Date last reviewed: November 11, 2019

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK
Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and around 25% of the public sector revenues in recent years. Ecuador has been experiencing fluctuating growth over the last few years, however the economy is seen returning to growth in 2020 as the government will ease up on its fiscal-tightening measures. Moreover, improved business sentiment should help fixed investment begin to recover, while a pick-up in credit growth should buttress private consumption. The reforms should help deliver a fiscal surplus next year, while gradually restoring foreign reserves amid lower borrowing costs. Structurally lower oil prices and an already dire fiscal situation will force public spending cuts, presenting headwinds to growth and undermining public support for President Lenin Moreno; although, IMF support will soften the blow. While President Lenín Moreno has begun to transition to a more business-friendly policy agenda, political constraints will inhibit his ability to make legislative progress. Additionally, it will take some time to ensure investors and improve sentiment.

OPERATIONAL RISK
Ecuador boasts a large labour force and a growing pool of educated workers, providing significant recruitment opportunities for low-skilled, labour-intensive industries. Reforms have improved access to schools and the quality of education, as well as cut unemployment and underemployment. Liberalisation of the country's immigration regulations present upside risk for employers as their ability to hire foreign workers improves. Proposed labour code reforms will potentially provide a more flexible and cost-effective labour force. Meanwhile, the government reinstated fuel subsidies on October 13 and on October 18 it proposed tax reforms in a bid to shore up public finances and restore political stability. Ecuadorian roads and ports are considered regional outperformers in terms of their connectivity and quality. The country is also making use of the 'public private partnership' project financing model to construct new roads, rail and ports.

Source: Fitch Solutions
Data last reviewed: November 29, 2019

10.5 Fitch Solutions Political and Economic Risk Indices

Graph: Ecuador short term political risk index
Graph: Ecuador short term political risk index
Graph: Ecuador long term political risk index
Graph: Ecuador long term political risk index
Graph: Ecuador short term economic risk index
Graph: Ecuador short term economic risk index
Graph: Ecuador long term economic risk index
Graph: Ecuador long term economic risk index

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Political and Economic Risk Indices
Date last reviewed: November 11, 2019

10.6 Fitch Solutions Operational Risk Index


Operational RiskLabour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Ecuador score46.2
54.137.650.842.4
Central and South America Average46.049.545.246.243.0
Central and South America Position (out of 20)10
5
17
8
9
Latin America Average48.450.748.944.649.3
Latin America Position (out of 42)3012
37929
Global Average49.750.349.8
49.349.2
Global Position (out of 201)11779
14488
128

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Ecuador vs global and regional averages
Graph: Ecuador vs global and regional averages
Country/Region
Operational Risk Index
Labour Market Risk Index
Trade and Investment Risk IndexLogistics Risk IndexCrime and Security Risk Index
Chile64.863.868.662.963.8
Costa Rica56.353.6
60.352.0
59.3
Panama55.447.656.467.050.6
Uruguay54.451.1
52.153.361.3
Mexico52.960.058.257.335.9
Colombia51.2
55.454.751.743.1
Brazil
50.146.748.453.851.5
Argentina49.052.842.450.450.4
Peru48.157.851.542.740.5
Ecuador46.2
54.137.650.842.4
El Salvador42.6
44.944.547.8
33.0
Suriname42.350.135.641.0
42.5
Belize42.151.938.140.737.8
Paraguay40.842.644.039.037.6
Guatemala40.743.844.740.933.5
Honduras39.839.846.939.932.7
Nicaragua39.741.639.136.9
41.1
Bolivia37.442.128.738.140.6
Guyana
36.342.838.329.534.6
Venezuela29.047.7
13.128.326.8
Regional Averages46.049.545.246.243.0
Emerging Markets Averages46.948.547.445.845.9
Global Markets Averages49.750.349.8
49.349.2

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: November 11, 2019

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Ecuador

Graph: Major export commodities to Ecuador (2018)
Graph: Major export commodities to Ecuador (2018)
Graph: Major import commodities from Ecuador (2018)
Graph: Major import commodities from Ecuador (2018)

Note: Graph shows the main Hong Kong imports from/exports to Ecuador (by consignment)
Date last reviewed: November 11, 2019

Graph: Merchandise exports to Ecuador
Graph: Merchandise exports to Ecuador
Graph: Merchandise imports from Ecuador
Graph: Merchandise imports from Ecuador

Note: Graph shows the main Hong Kong imports from/exports to Ecuador (by consignment)
Exchange Rate HK$/US$, average
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)
Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: November 11, 2019


2018
Growth rate (%)
Number of Ecuador residents visiting Hong Kong5,276
6.8
Number of Latin American residents visiting Hong Kong190,316-2.8

Source: Hong Kong Tourism Board
Date last reviewed: November 11, 2019

11.2 Commercial Presence in Hong Kong


2016
Growth rate (%)
Number of Ecuadorean companies in Hong KongN/A
N/A
- Regional headquarters
- Regional offices
- Local offices


11.3 Visa Requirements for Hong Kong Residents

HKSAR passport holders traveling for business or tourism do not need a visa for stays of up to 90 days in any 12-month period. One can request an extension through provincial migration offices. A stay of longer than 90 days will require a visa before arrival.

Source: Immigration Department
Date last reviewed: November 11, 2019

Content provided by Picture: HKTDC Research
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