Ecuador’s Household Consumption Boom

According to ElComercio.com Ecuadorian household consumption is higher than last year at 7.55% for the first quarter. The Central Bank chairman, Diego Borja says that three factors have influenced the consumption increase, the volume of credit extended by the Ecuadorian financial system, remittances from family abroad, and rising real wages. Officials point to other economic factors such as strong public investment and spending, which are helping consumer number increase. A study carried out by the IPSA Group Latin America shows that the remnants of the world economic crisis hurt consumption in 2010, but has recovered in the first quarter of this year. However, an economist at the College of Economics of Pichincha warns that Ecuadorians are spending, but not saving for the long-term economic future.Read Article