Ecuador Economic Outlook
November 8, 2016On 21 October, President Rafael Correa signed a decree that will allow the government to continue running high fiscal deficits. The decree establishes that the current debt ceiling—set at 40% of GDP—will now apply to consolidated public sector debt rather than total public debt, which is much higher. The increased leeway is unlikely to bode well with investors, given Ecuador’s poor record in repaying debt. Extensive efforts to staunch the widening budget shortfall have proven fruitless so far as oil prices remain low and the costs of reconstruction following April’s earthquake are weighing on the state’s coffers. Although Q1’s drop in GDP moderated in Q2, dismal economic activity in the two first months of Q3 and doubts over OPEC’s ability to firm up oil prices suggest that the country’s economic woes are far from abating.
Ecuador Economy Data
5 years of Ecuador economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Stock Market||1,042||0.0 %||Dec 02|
Ecuador Economic Growth
November 8, 2016Economic prospects remain bleak as a strong U.S. dollar is dragging on exports and unsupportive fiscal policies are constraining household spending, while President Correa’s decree risks the country’s creditworthiness. Nonetheless, our panelists see GDP contracting 2.3% this year, which is up 0.3 percentage points from last month’s forecast. Panelists expect the economy to record a softer decline of 0.1% in 2017.
Ecuador Economic News
November 10, 2016
In September, economic activity recorded an annual contraction of 5.3%, according to the monthly indicator for economic activity (IDEAC, Índice de Actividad Económica Coyuntural).
November 9, 2016
In October, consumer prices decreased 0.08% over the previous month, contrasting September’s 0.15% increase.
October 11, 2016
In August, economic activity recorded an annual contraction of 2.8%, according to the monthly indicator for economic activity (IDEAC, Índice de Actividad Económica Coyuntural).
October 7, 2016
In September, consumer prices rose 0.15% over the previous month, contrasting August’s 0.16% decrease.
October 3, 2016
The Ecuadorian economy performed slightly better in the second quarter, the result of gradually improving oil prices and an increase in crude output.