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Ecuador leads among Latin American countries that improve their business climate
Posted On 26 Nov 2021
Ecuador tops the list of the few Latin American countries that have managed to improve their business environment in the last three months, according to a report released Tuesday by the Brazilian economic studies center Getulio Vargas Foundation (FGV).
Ecuador leads among Latin American countries that improve their business climate
The so-called Economic Climate Indicator (ICE), measured every three months based on the analysis of economic experts from Latin America , advanced 34.7 points in Ecuador to 117.5 in this fourth quarter compared to the previous one.
It is the largest increase among the ten Latin American countries analyzed by the entity, of which only half obtained positive results.
In addition to Ecuador , Uruguay (+33.2 points), Colombia (+33.2), Bolivia (+13.4) and Paraguay (+7.2) also managed to improve their business environment.
These five countries have an ECI in the considered “favorable zone”, that is, above 100 points, except Bolivia, whose average score now stands at 87.3 points.
The ICE is obtained from a weighting between the Current Situation Indicators (ISA) and the Expectations Indicators (IE).
Ecuador, Uruguay, Colombia, Bolivia and Paraguay advanced thanks to the good performance they obtained when analyzing their current situation, with variations above 40 points.
However, this group of countries registered worse expectations, except for Colombia.
In general, the business environment in Latin America plummeted from 101.4 points to 80.6 points between the third and fourth quarters of the year, interrupting the recovery that had been observed since the second quarter of 2020.
Among the reasons for this decline are the lack of confidence in economic policy (67%), political instability (37%) and corruption (25%), according to the Getulio Vargas Foundation.
