Economic growth of Ecuador will only be 0.2% in 2019

Ecuador's economic growth will only be 0.2%, forgetting to grow the 1.4% raised by the government. The Ecuadorian Gross Domestic Product (GDP) grew by 2.4% in 2017 and compared to the crisis due to indebtedness, it was only 2018 at 1.4%. However, by 2019 it had been established that the growth would be 1.4% and in the last hours it was known that only 0.2% is targeted, announced by Verónica Artola, manager of the Central Bank of Ecuador (ECB).

"We always said that (adjustment) measures were going to slow down the economy. According to the information we have, we are not going to enter the negative field", the manager affirmed.

In an eventual case where the country entered into negative growth, it would lose business confidence and foreign investment opportunities, in addition, it becomes a negative point and backward in the agreement with the IMF in the last hours.

In this way, Lenin Moreno gives a reverse to its growth policy that has always criticized the management of Rafael Correa that left the country indebted uncontrollably and that hid important data for the financing of the future. In other words, the growth of Ecuador was based on debt and little fiscal control.

We recently reported that Ecuador promised a change in its labor reforms and a policy of reducing expenses and greater productivity in public institutions. That is to say, that the country does not work at a loss and control its expenses compared to what growth will be during 2019. Read about the following to understand this news.

Artola mentioned that "there will be deceleration, but no decrease or crisis". and he confessed that they expect the country's inflation to remain negative.

Despite these news, Ecuador lives a moment of hope and investor confidence. While businessmen ask for more support from the government, they trust that a VAT hike should not be the answer to the financial crisis.