Other dollarized countries will have good economic growth
The report also indicates that Ecuador is the third country with the lowest economic growth in South America in 2016, after Venezuela and Brazil. Among the causes attributed by the WB are the falling oil prices and the depreciation of regional currencies against the dollar, which have undermined the country´s competitiveness.
The study also ensures that policy decisions to reduce public spending have stopped the much-needed investment in infrastructure, what will have detrimental consequences in the medium and long term for the development of businesses and productive life of Ecuadorians. The degrowth of Ecuador in 2016 will be surpassed only by the falls of Venezuela and Brazil.
Apparently, the appreciation of the dollar and the falling oil prices would not be the root causes in the degrowth of Ecuador, because the World Bank publication also shows that dollarized countries like Panama and El Salvador will grow a 6.2% and 2, 5%, respectively, this year. Panamanians have been able to take advantage of the benefit to buy abroad at low prices, according to the Chamber of Commerce of Guayaquil. In accordance with the World Bank, Ecuador will not grow in 2018 the economy will rise by 0.5%, which is insufficient for the economic recovery. (I)