ECONOMIC DEVELOPMENT AND THE AMERICAS

Political Risk Analysis: What’s Ahead For Ecuador’s Economy In 2021?

First Latin American country to experience significant outbreak during global Covid-19 pandemic

In 2019, oil accounted for more than one-third of Ecuador's export revenues.

Encourage investment and growth in new sectors, essential to create jobs and generate additional tax revenues.

Problems in developing an adequate testing and tracking infrastructure limits their ability to spread the virus and raises concerns about how recurrent outbreaks can be effectively contained

What should foreign investors be aware of regarding the upcoming presidential elections in Ecuador?

PRESIDENT LASSO

Economic reforms

Important for investors not to overlook the governance issue that will face any candidate elected in 2021, namely the composition of Congress.

Gained support through an accelerated launch of the coronavirus vaccine and a period of relative stability after the election

The World Bank In Ecuador

Increased access to better quality education and social protection services

Trust funds

Financed advisory services and technical assistance

Areas: combating malnutrition, inclusion of people with disabilities and improving the efficiency of the social protection system.

Integration of water supply, sanitation, transportation and risk management reforms

2016

Poverty associated with water and sanitation services.

Resources to develop institutional capacities at the national and subnational levels

technical assistance to the National Institute of Statistics and Census for the publication of water, sanitation and hygiene indicators.

National Secretariat of Risk Management

National disaster response strategy and a methodology for creating sectoral disaster risk management programs that address a variety of hazards and risks.

Investment projects in Ecuador

Operations for Manta, Quito and Guayaquil

Cover transportation, water and sanitation sectors

Ecuador 2022

Economic freedom score 54.3

Makes its economy the 126th freest in the 2022 Index

25th out of 32 countries in the Americas region

Rule of Law

Recognizes the right to private property

However, if the land has not been in "active use" for two years, the state may redistribute the land.

Size of government

Individual income35%.
Maximum corporate tax rate 25%

Open markets; 7 commercial agreements

Trade-weighted average tariff rate is 9.5%.

284 non-tariff measures are in force.