IMF announces signs of increased public deficit

The International Monetary Fund (IMF) warned on Wednesday (August 20, 2014) on signs of increased public deficits and a worsening of external conditions for Ecuador, concluding its first review of the economy of the country in six years.

The IMF calls to “restrict the public spending” and “the moderation” in the current spending “to accommodate the increased public investment program.”

To meet that goal, the agency recommended the Ecuadorian government to review fuel subsidies, which favor to the poor, and deepen reforms to improve tax collection.

Ecuador drags a fiscal deficit of almost USD 5 000 million (4% of GDP). With inflation of 2.70% in 2013, its growth was 4.5%.