Introduction: What is now Ecuador formed part of the northern Inca Empire until the Spanish conquest in 1533. Quito became a seat of Spanish colonial government in 1563 and part of the Viceroyalty of New Granada in 1717. The territories of the Viceroyalty - New Granada (Colombia), Venezuela, and Quito - gained their independence between 1819 and 1822 and formed a federation known as Gran Colombia. When Quito withdrew in 1830, the traditional name was changed in favor of the "Republic of the Equator." Between 1904 and 1942, Ecuador lost territories in a series of conflicts with its neighbors. A border war with Peru that flared in 1995 was resolved in 1999....

See More from the CIA World Factbook
on Ecuador →

Economic Overview: At a Glance

The Ecuadorian economy is based on petroleum production, and agricultural production for domestic consumption and export. Principal exports are petroleum, bananas, shrimp, flowers, and other primary agricultural products.. Ecuador's reliance on these products has made it vulnerable to external price variations. Overriding economic difficulties stem from the country's weak financial sector, dependence on short-term capital inflows to finance the current-account deficit, overdependence on oil export receipts for fiscal revenue, tax evasion and wage indexation which obstructs progress in fighting inflation. Trade ...

See More from Australia's Country Briefs
on Ecuador →