Ecuador vs. Colombia and Peru: Is the country getting more expensive in 2026?

Ecuador's economic competitiveness saw a slight improvement in July 2026, with its real effective exchange rate depreciating by 0.55%. This data indicates that Ecuador's position relative to its trading partners marginally improved, but it does not mean that shopping in Ecuador is now cheaper than in Colombia or Peru.

The indicator, known as the Real Effective Exchange Rate Index (ITCER), tracks the evolution of prices and currencies between countries. In July, prices in the countries included in the calculation rose by an average of 0.18%, while Ecuador experienced a monthly inflation of -0.09%. This difference favored Ecuador's relative competitiveness.

Fernando Larrea Estrada, president of the College of Economists of Pichincha, explained that Ecuador's use of the U.S. dollar as its currency presents a unique situation compared to Colombia or Peru, whose currencies (peso and sol, respectively) can fluctuate against the dollar. Ecuador cannot devalue its own currency to make its products cheaper internationally. Therefore, Ecuadorian companies must focus on reducing costs, increasing productivity, and improving processes to compete.

While the real depreciation of 0.55% is favorable for relative competitiveness, it does not make Ecuador a cheaper country overnight. The index does not compare the direct cost of goods like a shirt in Quito versus Bogotá or Lima. Instead, it shows whether Ecuador is gaining or losing ground against its trade partners due to price and currency movements.

Adding to economic pressures, imported fuel costs have increased due to international disruptions linked to the Middle East conflict and refining capacity issues. Alberto Acosta Burneo, editor of Análisis Semanal, warns that this means Ecuador needs to export more to purchase the same amount of fuel it did previously. This challenge is not unique to Ecuador, as other economies also rely on fuel imports.