China is now Ecuador’s largest trading partner. This year, Ecuador’s exports of non-oil or mining products to the People’s Republic of China (PRC) increased by 81%. On the other hand, trade with the United States and the European Union increased by 56% and 53%, respectively while trade with other regional trading partners, specifically Colombia and Peru, increased by 54% and 53%, respectively.
Meanwhile, the level of indebtedness in the region is quite high. Between 2019 and 2022, Latin America’s public debt went from representing 68% of regional GDP to 84%. Despite this, Ecuador is one of the countries with the lowest accumulated debt, due, in part, to the favorable interest rates it has been able to obtain for its loans, and to its proximity to China. This second reason -the close diplomatic and economic ties between the PRC and Ecuador- has allowed the Latin American country to renegotiate the payment of this debt on several occasions. However, it must pay 42% of this debt by 2025, and this generates a degree of pressure on the country.
El Comercio (Ecuador): Ecuador mira en China un futuro comercial.