The IMF improves Ecuador growth estimate
The Ecuadorian economy will grow by 0.2% in 2017, and the following year it is expected to reach a 0.6%, according to the October 2017 World Economic Outlook forecasts presented yesterday in Washington by the International Monetary Fund (IMF).
The data reflect an improvement in the projection compared to the forecast made in April when the international organization expected Ecuador to decrease by 1.6% in 2017 and by 0.3% in 2018. The estimate of the international body is closer to that predicted by the Central Bank of Ecuador: a 0.7% growth of the Gross Domestic Product this year compared to 2016.
Economist Víctor Hugo Villacrés believes that the increase reported by the IMF is positive and, although small, it reflects a growing trend. He also clarified that to make such projections, the IMF does not use updated data and ensured that the report of the international body does not reflect the real growth situation of the Ecuadorian economy.
Villacrés explained that neighboring countries did not face a recession as pronounced as that of Ecuador. “We had to face the collapse of international oil prices and the earthquake that affected the provinces of Esmeraldas and Manabí.” According to the Central Bank, the earthquake of April 16, 2016, coupled with the fall in the price of oil, the appreciation of the dollar and legal quotas, that generated a contraction of -1.5% in GDP last year. (I)