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.