Ecuador, a very tiny 110,000 square mile west South American nation with thousands and thousands of sparkly, deserted sandy beaches, is undergoing an economic boom that is bringing about new projects throughout the country. directory
However, don't expect to fly to enjoy a bit of the action right now.
Despite its position on the Equator between Colombia and Peru and its proximity to the Pacific Ocean, Ecuador is not an Asian tiger. The political environment is disturbing.
In the 2012 World Bank Doing Business Report, Ecuador ranks 130th out of 183 nations. In another metric called Start of a Company, Ecuador is rated 164th.
Alejandro Espinosa-Wang from the World Bank said that, in order to create a firm in Ecuador's capital, Quito, a contractor will need to complete 12 processes, wait 56 days and spend the equivalent of 28% of GNI per person. "Sentiment," he says.
Alternatively, "The average number of procedures required in Latin America and the Caribbean is nine. The Organization for Economic Co-operation and Development has just five high-income economies (OECD). In Ecuador, starting an enterprise takes an average of 54 days and 12 days.
Ecuador boasts remarkable figures to attract investors, according to findings in the London-based Global Property Guide, the International Monetary Fund, Ecuador's National Statistic Office, the Central Bank of Ecuador, the World Bank and David Morrill.
The advantages include:
As capital becomes more cheap, investment is growing.
Indigenous people flock to major cities like Quito and Guayaquil.
Since 1990, the urban population has risen at an average yearly pace of 2,7 percent. By 2010, 67% of the people were in towns.
There is a rush towards the Pacific coast, while ecotourism is booming in the Andes and Amazon regions.
Ecuadorian families have a strong political commitment to improve housing circumstances.
U.S. expats come to towns such as Quito and Cuenca, where investment interest rates are low.
The US dollar is accepted as a legal currency by Ecuador.
Since 2007, average yearly property appreciation in the United States has been between 8% and 12%.
After growth of 3.58% in 2010, growth was 5.78% in 2011. (provisional). The GDP is predicted to grow by 5.4 percent in 2012.
Public debt will progressively grow from 20.7% of GDP in 2010 to 25% of GDP in 2015.
It is projected that the current account deficit would stay steady at around 3.5% by 2015.
Unemployment is predicted to stay constant at around 7.5% from 2012 through 2015.
The General Building Permit Index rose from 166.6 in 2000 to 350.6 in 2006. The Bureau of Indexes of Ecuador gathered the information last year.
The overall construction price index of Ecuador decreased from 229.54 in August 2008 to 210.79 in May 2009 following the global financial crisis. Since then, however, construction prices have climbed to a record high of 234,569 in January 2012. Building expenses grew by 6.88% in 2011 (+2.18% in real terms), following a rise of 1.95% in 2010. (-0.53% realistically)
The acute financial crisis that struck Ecuador in the late 1990s led to both economic and social problems. Banks have defaulted. The rate of emigration has drastically increased. In March 2000, Sucre was replaced by the US Dollar after losing 67% of its foreign currency in 1999.
Despite concerns about the world economy, Ecuador does not exhibit any indications of slowdown, the International Monetary Fund finds.
Lower interest rates, a stable currency rate and a growing banking system all helped raise real estate investments. According to the Ministry of Finance, inflation is expected to reach 5.1 percent this year.
According to David Morrill, "construction booms also occur in Cuenca and Manta, away from Quito and Guayaquil." "The residential sector plays a key role for Ecuadorians returning from abroad to live or invest, mostly from the United States and Spain."
Ecuadorian architect Dayuma Roman Jauch adds: "For the previous decade, households have had better access to mortgages for buying flats in metropolitan locations. Large companies frequently help their workers buy residences near their places of work."
In the political front, US economist President Rafael Correa is reported as saying that he likes to define Ecuador as a "revolutionary" anti-imperialist republic.
Despite his personal ties with the President of Venezuela, Hugo Chavez, and a number of economic conflicts with the US, some analysts feel that the foreign policy of Correa was less aggressive than Venezuela.
At home, Correa's policies tends to be a combination of Latin social-democratic heritage and authoritarian left politics. It promotes cheap housing, protects the environment and shakes hands with Iranian officials.
The government is also combating poverty and injustice by spending more oil on the poor.