Employers return today to deal with their business in an economic context that is still marked by difficulties: Ecuador continues treading the ground of recession.
The statistics of the Central Bank of Ecuador (BCE for its Spanish acronym) reveal the recurrent fall in GDP in the second quarter (-0.6%) with regard to the first and third quarter (-0.4%), compared to the second of 2015, which is translated into a technical recession. And while the guild prefers to appeal for caution, others see up close a depression.
“Once some decisions (government) start flowing, which we believe should be given quickly, we expect a reaction in the second half,” says the president of the Ecuadorian Business Committee (CEE) Richard Martinez. He refers to the progress in the agreement with the European Union, the implementation of the Law on Public-Private Partnership and the withdrawal of safeguards, from June. “These are three things we see with positivism,” says Martinez.
Even the Ecuadorian families that cover a large part of the Gross Domestic Product (GDP) with their expenses, have cut their consumption and that is a direct loss for the companies, because it means selling less and they could be balanced financially, compressing more their spending to adjust downwards their workforce.