U.S. fiscal deficit will affect the national economy

U.S. Economy

National Analysts says that if the U.S. government fails to control the budget deficit in 2013, it will cause a negative effect on Ecuador’s three economic sectors: exports, remittances and financing.

The fiscal deficit and the looming economic recession that the United States will face will set back the amount of foreign currency Ecuador receives from the sale of products, this will cause U.S. taxpayers to face higher taxes and the government will restrict spending in the social area.

Such measures could hurt economic growth to the world power, causing the demand for products from that nation, such as; oil, shrimp, bananas and coffee, to fall.

Ecuador being the biggest trading partner of the United States, means that the negative effects will be felt in this country also, resulting in serious consequences for the export sector, affecting the economy, employment and production. Remittances sent by migrants to their families are the second largest source of national income, after oil.

Today is a decisive day for the United States because it is the deadline for Congress to face the problem of the huge fiscal gap experienced by the U.S. economy.