Transcript Diapositiva 1

ECUADOR REPUBLIC OF
OPPORTUNITIES
October 12th of 2015
Ecuador
Country Profile
Name: Republic of Ecuador
Government type: Democracy
Capital: Quito
Business Languages: Spanish (official) & English
Area: 257,217 Sq Km
Time zone: GMT -5 hours and GMT – 6 hours
Currency: US Dollar
Population: 15.8MM approx.(14.5MM census 2010)
Nominal GDP: USD 100,917.4 MM (current 2014)
Naturally-formed regions comprising two time-zones
The country’s name symbolizes its location
A largely diverse country: multi-ethnical and multi-cultural:
14 languages among 8 ethnic groups
Economic and Social
Indicators
Ecuador has achieved STRONG GROWTH in the
COMPETITIVE
SOCIAL-POLITIC
ECONOMIC
last decade, preparing for its future development
GDP GROWTH
INVESTMENT
Annual average 4,6% from 2007 to 2014,
among the highest in the region
High level of investment with low
public debt
POLITICAL STABILITY
SOCIAL DEVELOPMENT
Re-elected President with the public approval of
72%
Improvement in HDI and wealth
concentration
INFRASTRUCTURE
LOGISTICS
Development of communication,
energy and road infrastructure
Roads, airports and ports development, ideal
location for commerce
*Source: ECLAC
Macroeconomic benchmark of Ecuador
Rate of Inflation 2014
3.7%
*Source: BCE
3.9%
4.2%
5.1%
5.2%
8.3%
68.5%
Ecuador: significant advances in poverty reduction
REDUCTION OF
EXTREME POVERTY
16.45%
7.36%
2007
June 2015
*Source: INEC
Ecuador: one of the most dynamic economies in an evergrowing Latin America
GDP Growth Rate 2007 - 2014
(by percentage)
7.8
5.5
6.4
5.9
4
3.5
2.2
4.4
5.1
4.5
3.1
3.8
2.6
1.3
0.6
2007
2008
Ecuador
2009
-1.6
Latin America
2010
2011
2012
2013
Average Growth 2007-2014
Latin America: 3.2 %
Ecuador: 4.3 %
Source: Ecuadorian central Bank, ECLAC
* Projected 2014
2014*
Ecuador reduced income inequality
REDUCTION OF INCOME INEQUALITY
Gini coefficient
0.551
2007
*Source: INEC
0.458
1st place in Latin America
June 2015
Ecuador invests in education and human talent
2.12% of GDP in public spending for
higher education, the highest in the region
EVOLUTION OF PUBLIC EXPENDITURE ON HIGHER
EDUCATION AS % OF GDP
10,482
Scholarships granted for
Ecuadorians to study in world
renowned universities between
2007 - 2014
Public Expenditure % GDP
*Sources: SENECYT and Coordinating Ministry of Knowledge and Human Talent
Ecuador: A Latin American leader in competitiveness
Global
Competitiveness
Index
103
2007-2008
32 positions in the
last 7 years
Source: World Economic Forum
76
2015-2016
While Latin America itself has made significant advances in its
competitiveness, Ecuador has experienced the highest improvement in
the region
*Source: World Economic Forum
National indicators
17
airports renewed and
operated at the national level
8
new hydroelectric plants by
2016
With a public-private investment of
more than USD 4.5 billion
*Source: MCPEC
86%
9,000 km of new highways
With a public investment of more
than USD 8 billion
6
multi-purpose projects of irrigation
control and floods
With a public investment of more
than USD 800 millions
Costs of essential services for industries
8₡
29₡
kilowatt per hour
One of the lowest energy
costs in the region
Per liter of diesel
One of the lowest cost in the
region
1.5$
Per cubic meter
One of the lowest costs of water in
the region
*Source: OLADE- Year 2014
*Source: World Bank – Year 2014
*Source: Metropolitan Water and Sanitation Company of Quito – Year 2014
The state has invested in infrastructure:
Ports, airports, telecommunications, highways and power generation projects
37,418 km
9,200 km
of fiber optic cable
of roads and highways
Annual growth
rate is 32.8%
More than USD 7.600 millions invested
*Source: MINTEL
* Source : MICSE
* Source : MICSE
Power generation projects
By 2016 Ecuador will have
8,300 MW installed
STRENGHTENING THE PRODUCTIVE CHAIN
Vision for 2025
AGRO
INDUSTRIES
BASICS
INDUSTRIES
INTERMEDIATE
INDUSTRIES
PRODUCTIVE
SERVICES
TOURISTIC
INDUSTRY
Signed investment contracts
44 investment contracts signed, for a
total of USD 4.565 millions
Main sectors from Turkey with potential to invest in Ecuador
• FRESH AND FROZEN FOODS
• METALWORKING
• LOGISTIC
• TOURISM
• PETROCHEMISTRY
• AGROINDUSTRIAL
Public - Private Partnership
LAW PROJECT
Scope of application
• Extends the possibility for the private sector
to finance public projects.
• Private initiatives can refer to any project:
projects in strategic sectors (energy,
telecommunications, transport, etc.), public
services (hospitals, schools, etc.) or any
other services.
Objectives
Attract domestic and foreign investment for the implementation of
priority public projects.
Promote external competitive financing companies, banks and
other financial instituions, without discriminating tax havens
Facilitate internal financing through the stock market
Incentives to investors
Stability on tax regime.
Project to be exempt from income tax for 10 years.
Payments of dividends exempt from currency outflow tax
VAT compensation for cost reduction.
Exemption from customs tariff and other taxes, such as the transfer of
ownership.
Ecuador is currently searching for foreign partners to
actively participate in the development of its basic industries
TRIPARTITE MODEL FOR PARTNERSHIP
Foreign partners/investors will benefit from the involvement of the
Ecuadorian Government and other local players
FOREIGN PRIVATE COMPANY
ECUADORIAN GOVERNMENT
LOCAL PRIVATE COMPANY
• Provides know how, technology
and best practices
• Guarantees legal framework
stability
• Possible joint venture
• Brings experience for new
commercial agreements
• Develops adequate policies and
infrastructure
• Attraction of foreign investment
• Invests when necessary
• Facilitate relations with the local
market
The management model is negotiable and may vary depending
stakeholders participation.
• Invest when necessary
Bilateral Trade Turkey - Ecuador
TOTAL TRADE BALANCE ECUADOR – TURKEY
(USD Thousands FOB)
250,000
Miles USD
200,000
150,000
100,000
50,000
(50,000)
Exports
Imports
Trade Balance
2010
2011
2012
2013
2014
22,732
24,443
(1,711)
78,814
51,690
27,124
104,277
54,320
49,956
225,111
82,981
142,130
192,721
89,097
103,624
2015
Jan-Jul
136,469
21,635
114,834
NON-OIL TRADE BALANCE ECUADOR – TURKEY
(USD Thousands FOB)
250,000
Miles USD
200,000
150,000
100,000
50,000
Exports
Imports
Trade Balance
2011
2012
2013
2014
78,814
104,277
225,111
192,721
2015
Jan-Jul
136,469
50,928
27,886
53,536
50,741
82,887
142,225
89,014
103,707
21,635
114,834
ECUADOR’S EXPORT PORTFOLIO
Tourism
Wood
Software
Metalworking
Logistics
Services
Flowers
Tropical
fruits
Vehicles and
Autoparts
Mango
Farmaceutical
Banana
Fresh and
Processed
food
Plastic
Textiles
Cocoa and
Chocolate
Handicraft
Sea Food
Coffee
MAIN PRODUCTS IMPORTED FROM TURKEY TO ECUADOR
(USD Thousands FOB)
Jan – Jul 2015
8418.50.00.90 OTHER FURNITURE FOR CONSERVATION AND…
15%
1,732
5501.30.10.00 CABLES ACRYLIC OR MODACRYLICS OBTAINED BY…
0%
1,639
7228.70.00.00 RODS OF OTHER ALLOY STEEL
1,631
1,383
8701.90.00.00 OTHER TRACTORS NOT INCLUDED IN OTHER PARTS
9402.90.10.00 OPERATING TABLES AND PARTS
15%
890
8437.80.11.00 MACHINERY FOR GRINDING GRAIN
0%
566
8451.80.00.00 OTHER MACHINERY FOR WASHING, CLEANING,…
0%
497
2818.30.00.00 ALUMINUM HYDROXIDE
441
2836.50.00.00 CALCIUM CARBONATE
429
8437.10.90.00 OTHER MACHINES FOR CLEANING; SORTING OR…
419
0
600
0%
0%
0%
5%
1,200
1,800
0%
MAIL PRODUCTS EXPORTED FROM ECUADOR TO TURKEY
(USD Thousands FOB)
Jan – Jul 2015
0803.90.11.00 FRESH BANANAS TYPE "CAVENDISH VALERY"
133,726 145.8%
4407.22.00.00 WOOD SAWN OR ROUGHLY SHAPED OF VIROLA,…
0%
846
9606.30.10.00 TAGUA BUTTONS
752
2101.11.00.00 EXTRACTS, ESSENCES AND CONCENTRATES OF COFFEE
353
8516.60.20.29 OTHER ELECTRIC RANGES INDUCTION
205
1504.20.10.00 ROUGH FISH OIL
186
0%
9%
0%
15.6%
58.5%
2007.99.92.00 OTHER PUREES AND PASTES OF OTHER FRUITS115
AND…
46.8%
0603.11.00.00 FRESH CUT ROSES
102
0%
0303.42.00.00 YELLOW FIN TUNA FROZEN
76
41
9619.00.10.10 DIAPERS OF PAPER PULP, WADDING OR WEBS
0%
0
50,000
100,000
150,000
THANK YOU
Diego Aulestia
Minister of International Trade of Ecuador
[email protected]
Juan Francisco Navas
International Trade Officer Turkey
[email protected]