Summary: On April 16, Ecuador was hit by a strong 7.8­magnitude earthquake which has created new fiscal and balance of payments needs. The earthquake compounds the existing difficulties facing Ecuador that include declining oil prices, U.S. dollar appreciation, low international reserves, and limited access to international financing, which have worsened the fiscal, economic, and financial outlook. The authorities’ policy response to the earthquake has been timely, but limited access to financing and a weak fiscal position constrain the ability to pursue a deeper emergency and reconstruction response. Real GDP is expected to contract significantly this year and the next.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.