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Andean Group - February 2011 (ISSN 1741-4466)

ECONOMIC OVERVIEW : ECUADOR

The economy is doing rather well. New car sales in 2010 were up 41%, and set a new record of 130,350 units sold. It is worth underlining that Ecuador's new car market is only 10% smaller than Colombia's even though Ecuador's population (of about 14m) is less than a third of Colombia's 45m.
The previous record year for new car sales was 2008 when the industry shifted 112,684. In 2009, sales dropped to 92,764. The bestselling brand is Chevrolet, which accounted for 53,429 new vehicles sold.
The main reason why the car market boomed in 2010, and is likely to boom again, is that the oil industry did much better than in 2009. The oil industry has got off to a solid start in 2011 with production from the state-owned Petroecuador up 8%, year-on-year at 148,000bpd. The company expects to produce 51m barrels in total in 2011 and to more than replace them by adding 53m barrels to possible reserves.

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