Ecuador's ability to generate fiscal revenues will be hampered by low oil prices, and we forecast that the budget deficit in 2015 will be the widest in decades. Nevertheless, improving non-oil revenue generation will help the government improve its fiscal account in the coming years
Ecuador's current account balance will remain under pressure, despite the recent bounce in oil prices which has narrowed the deficit in recent months. The strong US dollar and sluggish recovery in oil prices will keep the country's current account in the red for the next several years.
Due in large part to oil prices, which we forecast will remain very low compared to recent years, we forecast a sharp decline in real GDP growth in Ecuador over the next several years. Lower oil receipts will have a particularly significant impact on government expenditures, and will indirectly weigh on private consumption.
Complete the trial form to receive a free issue of Latin America Monitor sent to your email address. The Latin America Monitor provides you with in-depth country by country data, analysis and forecasts.
START A FREE TRIAL TODAY
STEP 2: SELECT PRODUCTS
Please select the free products you would like to trial:
Thank you for your interest in Latin America Monitor
You will shortly receive an e-mail with link(s) to a full version of the newsletter(s) you selected. A member of our Client Services team will be in touch soon to receive your feedback on the newsletters and arrange a convenient time for a free demonstration of the full service. If your enquiry is urgent, please email our team here Thanks, BMI Research