Former Minister believes Ecuador will not be able to sustain rate of growth in public investment

Elpais.com reported 0il has underpinned the economy of Ecuador since the 1970s. Of every 100 dollars entering the country export 60 correspond to this hydrocarbon. In the seven years leading Rafael Correa as head of State, barrel has quoted between 80 and nearly 100 dollars, surpassing expectations. Even so, the country has had to borrow to finance the increase in public investment, which is currently between 12 and 13 per cent of GDP – the Latin America average is 5%. In 2013 it closed with a deficit of 5.059 billion dollars budget, five times more than in the year before. The Government needs, in addition, 4,943 million of financing to meet the 2014 budget. “That great desire of the Government to invest is the cause of this deficit,” explains the former Minister of Finanzas Fausto Ortiz. “The country spends because it is financing and grows because that funding translates into public works,” it added. The former Minister of finance considers, however, that the country will not be able to sustain the rate of growth in public investment. The approved budget for 2014-34,300 million dollars, with the expectation that the average price of a barrel of oil is maintained at 86.4 – $ requires 4,943 million in financing. Read Article

THINKING OF MOVING TO ECUADOR – THIS BOOK WILL GIVE YOU VALUABLE CULTURAL INSIGHT