Public investment exceeds for the second year private investment

Image: Expreso

Economy is increasingly relying on resources that come from the public sector. In fact, for two consecutive years, these have been increasing, at the expense of private sector flows, an opposite situation to what used to happen years ago.

According to the Central Bank of Ecuador, the bulk of investment (Gross Fixed Capital Formation-GFCF), which reached 27.819 million dollars in 2014 -Last statistics available- was distributed as follows: $ 14,576,000 by public investment and $ 13,243 million, by provate investment (I).

Hence oil prices and taxes keep falling, two sources of funds for the state coffers, the economy is more exposed since the government will have fewer resources to promote the Gross Domestic Product (GDP).