Highlights of Ecuador
Prospects for 2012 are encouraging for Ecuador. Due to the global economic slowdown and the effects of the crisis in Europe, Latin America would continue to grow in 2012, but at a slower rate, estimated at 3.7%.
Similarly, the performance of the local economy would collate well in 2012 compared to the perspective of high-growth countries such as Colombia (4.5%), Chile (4.2%), Brazil (3.5%) and Costa Rica (3.5%).
According to the the Internal Revenue Service (SRI), Ecuador will have the largest increase in tax revenue this year. This institution states that they will reach between USD 300 and USD 450 million in 2012.
The prevention of outflow of foreign exchange is a complex task for the government. However, it has tried to control the outflow by increasing the tax on remittances (ISD) to 5%, as well as providing benefits and incentives to exporters, importers and traders; thus, trying to keep money in the Ecuadorian economy.
In its multi-year plan, the government tries to maintain oil exports, which along with tax revenues are its main sources of income. In 2012, it is expected to break the historic record of oil exports, reaching 526,000 barrels per day and 600,000 barrels in 2013.
As for trade balance, the Ecuadorian government tries to control imports and double non-traditional exports. It would allow the reversal of the trade deficit for 2013.
In 2012, mining industry in Ecuador will represent a significant factor in domestic production. Thus, the beginning of a new phase is foreseen in the Ecuadorian mining sector with 5 mining strategic contracts.
Ecuador forecasts a growth of 4.2% for 2012.
