403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Ecuador's Fragile Comeback: How A Crisis-Hit Economy Is Climbing Out Of Recession
(MENAFN- The Rio Times) Key Points
Ecuador is closing 2025 with a clear rebound, growing 3.8% after last year's recession.
The recovery rests on fiscal reforms, export expansion and IMF-backed discipline that remain politically risky.
Big questions remain over whether growth can last once the rebound effect fades and protests return.
Ecuador is ending 2025 after a sharp turnaround. Following a 2% contraction in 2024, the Central Bank now estimates growth of around 3.8%, driven by stronger household spending, surging non-oil exports and a flow of remittances.
Inflation is low, the current account is in surplus and country risk has come down. President Daniel Noboa has tied this improvement to a tough adjustment plan.
His government has cut thousands of public-sector jobs, trimmed the size of the state and pushed through urgent economic laws.
The most controversial move came in September, when he scrapped the long-standing diesel subsidy, raising the pump price from 1.80 to 2.80 dollars a gallon and saving the treasury roughly 1.1 billion dollars a year.
For exporters, 2025 has been a banner year. Non-oil, non-mining sales have jumped, delivering a trade surplus of more than 4.5 billion dollars.
Shrimp alone has generated billions in revenue, with China now taking a rising share under a trade deal that completed its first year in May. New cooperation agreements with Asian and Middle Eastern partners are meant to lock in that momentum.
International lenders have rewarded the shift. The IMF has expanded its programme to about 5 billion dollars, while the World Bank and Inter-American Development Bank have together approved roughly 2.1 billion dollars in fresh credit.
That support has helped Ecuador stabilise its finances and start rebuilding market confidence. The costs are real. A month-long nationwide strike led by Indigenous groups over fuel prices and mining policy left several people dead and many injured or detained.
Informal work remains high and many families still feel left behind. Even official forecasts see growth easing back below 2% after 2025 unless investment, security and energy reforms deepen.
Ecuador is closing 2025 with a clear rebound, growing 3.8% after last year's recession.
The recovery rests on fiscal reforms, export expansion and IMF-backed discipline that remain politically risky.
Big questions remain over whether growth can last once the rebound effect fades and protests return.
Ecuador is ending 2025 after a sharp turnaround. Following a 2% contraction in 2024, the Central Bank now estimates growth of around 3.8%, driven by stronger household spending, surging non-oil exports and a flow of remittances.
Inflation is low, the current account is in surplus and country risk has come down. President Daniel Noboa has tied this improvement to a tough adjustment plan.
His government has cut thousands of public-sector jobs, trimmed the size of the state and pushed through urgent economic laws.
The most controversial move came in September, when he scrapped the long-standing diesel subsidy, raising the pump price from 1.80 to 2.80 dollars a gallon and saving the treasury roughly 1.1 billion dollars a year.
For exporters, 2025 has been a banner year. Non-oil, non-mining sales have jumped, delivering a trade surplus of more than 4.5 billion dollars.
Shrimp alone has generated billions in revenue, with China now taking a rising share under a trade deal that completed its first year in May. New cooperation agreements with Asian and Middle Eastern partners are meant to lock in that momentum.
International lenders have rewarded the shift. The IMF has expanded its programme to about 5 billion dollars, while the World Bank and Inter-American Development Bank have together approved roughly 2.1 billion dollars in fresh credit.
That support has helped Ecuador stabilise its finances and start rebuilding market confidence. The costs are real. A month-long nationwide strike led by Indigenous groups over fuel prices and mining policy left several people dead and many injured or detained.
Informal work remains high and many families still feel left behind. Even official forecasts see growth easing back below 2% after 2025 unless investment, security and energy reforms deepen.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment