Ecuador Economic Outlook
August 11, 2015An array of economic headwinds, including persistently low energy prices, an appreciating USD, and skyrocketing borrowing rates have been pressuring the Ecuadorian economy. Ecuador’s export revenues are down due to low energy prices, forcing the government to revise its deficit targets earlier this year. Ecuador has used the greenback as its official currency since 2000, and although it has provided stability in the past, the country is without a lender of last resort and must rely on outside financing to cover its budget gaps. The country now faces increasingly high borrowing costs from international bond markets and despite trimming pension programs and raising various taxes, the government is still facing a budgetary shortfall. Meeting this shortfall through continued fiscal consolidation will further test the government’s already wavering popularity.
Ecuador Economic Data
5 years of Ecuador economic forecasts for more than 30 economic indicators.
See all the data and analysis available in each of our Regional and Country reports.
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Ecuador Economic Growth
August 11, 2015Although Ecuador faces significant challenges, it has demonstrated a strong willingness to encourage investor confidence, and continues to work closely with Chinese partners in order to develop large scale infrastructure projects, including a massive hydroelectric project that’s due to be completed in 2020. LatinFocus Consensus Forecast panelists expect the economy to grow 1.5% in 2015, which is up 0.2 percentage points from last month’s forecast. In 2016, panelists expect GDP to expand 2.2%.
Ecuador Economic News
August 11, 2015
In June, economic activity fell 1.9% over the same month last year, according to the monthly indicator for economic activity (IDEAC, Indice de Actividad Economica Coyuntural).
August 6, 2015
In July, consumer prices fell 0.08% over the previous month, which contrasted the 0.41% increase tallied in June, marking the lowest reading since June 2013.
July 10, 2015
In May, economic activity fell 13.9% over the same month last year, according to the monthly indicator for economic activity (IDEAC, Indice de Actividad Economica Coyuntural).
July 6, 2015
In June, consumer prices rose 0.41% over the previous month, which followed the 0.18% increase tallied in May.
July 2, 2015
In Q1 2015, GDP grew 3.0% over the same quarter of the previous year, which came in below the 3.5% increase registered in Q4 and represented the slowest pace of growth since Q2 2010. Q1’s slowdown mainly reflected a deterioration in domestic demand.