Economist Intelligence Unit reports Ecuador seventh worst performing economy in world

Posted on August 12, 2016 • Filed under: Economy, Ecuador, Ecuador Emergency

There are only two dollarized countries among the 20 worst. The figures are from the Economist Intelligence Unit. reported Ecuador is the seventh worst economy in the world according to the group Economist Intelligence Unit. A single outgrow Ecuador Venezuela, which ranks first, and countries such as Guinea, Syria, Libya, Azerbaijan and Brazil.

The information was disclosed by the editorial director of the Intelligence Unit of The Economist, Robert Ward, an expert on global economy, business and industry trends, in his account of the social network Twitter.

The Economist makes its own calculations, the primary source of information are always government entities in each country, explains Luis Espinosa Goded, economics professor at the Universidad San Francisco de Quito. But there are two factors to consider in the disseminated statistics.

The first analyzes, is that of the countries mentioned in the balance, except for Venezuela, which ranks first, Libya and Ecuador are not oil – dependent countries, “which disarms the theory of the Ecuadorian government that the crisis is because of the drop in oil prices , “says Espinosa.

“Most countries in this list are not oil -producing countries par excellence, but with very poor economic policies.” Second, he adds, it is that Ecuador and Puerto Rico are also the only countries in the list with a dollarized economy, which results in Ecuador are not dependent on the appreciation or the strength of the dollar. “Ecuador is not the only country with a dollarized economy, but is the only one with a strong currency with that list , ” he says.


Vespers that The Economist disseminate this information, the coordinator of Economic Policy, Patricio Rivera, minister said Ecuador ‘s economy suffered the effects, among others, the fall of international oil prices and the appreciation of the dollar. But he stressed that “Ecuadorians calmly begin to see how the economic situation in the second half of this year improvement , ” he said.


“The Minister Rivera seems to live in a fantasy world with Rafael Correa Delgado, while the rest of the world live in a country where if we are in crisis , ” said Espinosa Goded.

“To get out of there, the first thing is to accept that there is a crisis and it has never admitted Rivera, now he says that we are improving.”

For his part, the macroeconomist Alberto Shortens Burnet thinks: “What is assessing the Economist is that Ecuador has a highly dependent on its oil production and public spending economy.”

“Despite being dollarized, Ecuador has a little free economy, very tight and difficult to do business, with restrictions on economic activity and trade , ” added Acosta. (LGP)

Central Bank: there is only one fourth crisis

After publishing the report of the National Accounts for the first quarter of 2016, the Central Bank convened a press conference on 22 July. There he explained that the fall of 3% of gross domestic product (GDP) does not represent a crisis.

The arguments, according to the head of the agency, Diego Martinez, are that, for a crisis to be considered as such, must be at least three of the following: more than two quarters of annual negative growth, annual rates of inflation or deflation greater than 30% reduction of deposits or loans in the financial system in at least 20% and an annual increase of two percentage points higher unemployment.

But “the country is not in crisis , ” Martinez, “the four established criteria, only one, which corresponds to GDP (three consecutive quarters with negative annual rates) is satisfied , ” he said.

When asked by a journalist whether that would mean that Ecuador faces only a quarter of crisis, Martinez replied, “That would be technically correct”. Read Article

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