Ecuador Economic Outlook
September 13, 2016Ecuador’s dollarized economy is facing myriad pressing issues that stem from subdued oil prices, a strengthened dollar and the aftermath of April’s earthquake. The country has undertaken fiscal and external adjustments that signal its commitment to maintain the official dollarization, which is widely regarded as conducive to macroeconomic stability. Nonetheless, the strengthening dollar has weighed on Ecuador’s exporting sector, with many of its major regional trading partners depreciating their currencies. In turn, reduced revenues have hit the country’s finances, exacerbated by depressed income from oil-related exports. In an effort to rein in the country’s fiscal deficit, the government slashed capital expenditure and imposed several tax increases earlier this year. These, however, have put a strain on wages and public spending, prompting domestic demand to deteriorate and causing economic growth to plummet to a record low in Q1. Against this backdrop, Fitch Ratings cut Ecuador’s rating outlook to negative in late August.
Ecuador Economy Data
5 years of Ecuador economic forecasts for more than 30 economic indicators.
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Ecuador Economic Growth
September 13, 2016The outlook remains grim, with higher taxes affecting private consumption and capital cuts hurting investment and government consumption. Our panelists see GDP contracting 2.8% this year, which is up 0.4 percentage points from last month’s forecast. Panelists expect the economy to record a softer decline of 0.2% in 2017.
Ecuador Economic News
September 8, 2016
In July, economic activity plummeted and recorded the largest contraction in over ten years.
September 6, 2016
In August, consumer prices fell 0.16% over the previous month, the lowest reading in over three years.
August 11, 2016
In June, economic activity recorded an annual decrease of 2.1%, according to the monthly indicator for economic activity (IDEAC, Índice de Actividad Económica Coyuntural).
August 4, 2016
In July, consumer prices fell 0.09% over the over the previous month.
July 15, 2016
In May, economic activity recorded an annual contraction of 1.7%, according to the monthly indicator for economic activity (IDEAC, Índice de Actividad Económica Coyuntural), which was a much softer decline than April’s deep 14.5% decrease.