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UPCOMING WEBINAR - CHILE ELECTION BRIEFING: AFTER THE GENERAL ELECTIONS...

A Bath of Humility for the official Alianza Pais
ECUADOR · In Brief · 24 Feb 2014

Last Sunday 23d, Ecuadorians went to the polls for the 10th time since 2007 to elect sectional authorities. Every time, the President and his movement emerged victorious from these elections and public consultations. However, this last time is quite different. Quito, Guayaquil, and Cuenca and 16 ...

Back to the Seventies
ECUADOR · Forecast · 19 Feb 2014

Executive Summary The economy may have grown 4.5% last year -- 0.5 pp above expectations, though more slowly than in 2012. That would follow a Q3 growth rate of 4.9% y/y, and 1.8% q/q – the highest quarterly growth rate in a year. Oil is the driver of these happy results: oil manufacturing expand...

Tweaking The Model To The Left?
ECUADOR · Report · 28 Jan 2014

Executive SummaryThe beginning of 2014 brought important changes regarding laws and regulations that will affect the productive and financial sectors. Companies will face restrictive changes in their marketing and publicity strategies and decisions as well as in their product labeling practices. ...

Will Oil Price Be The Scrooge Of The Ecuadorian Economy?
ECUADOR · Report · 26 Dec 2013

Executive SummaryThe strong fall in oil prices since October 2013 and less than optimistic estimations for the future forced government officials to come up with lower GDP growth rates for 2014 and 2015. Minister of Finance Fausto Herrera placed these rates at 4% for 2014 falling back to 3.5% in ...

Correa Bullish on the Economy
ECUADOR · Forecast · 26 Nov 2013

Executive Summary President Rafael Correa sounded very optimistic when he announced sharply higher projections for economic performance, not only for 2013, but for the next three years as well.The government expects GDP to grow 4.1% this year, then 4.5% in 2014, 4.7% in 2015 and 6.5% in 2016. Aut...

Oil Boosts Finances; the President Makes Threats
ECUADOR · Report · 21 Oct 2013

Executive Summary The oil sector delivered mixed news in Q3. Crude oil production rose by 15,000 barrels per day in January-August 2013, from 2012.This fact, plus a high average oil price of $97.91 per barrel, helped to boost crude oil exports 2.7% y/y, from $8.717 billion to $8.950 billion. Yet ...

Yasuni is Worth $18b in Present Value but What is the Net Present Value?
ECUADOR · In Brief · 04 Oct 2013

As all expected, the National Assembly declared of "national interest" the exploitation of the Yasuni oil reserves.  With 108 votes against 25, legislators included blocks 43 and 31 in the document.  However, the approval excludes activities in the "intangible zone" --the area where the Tagaeri-T...

Going Into Extractivism to Get Out From Extractivism
ECUADOR · Report · 25 Sep 2013

Executive SummaryEcuadorians do not understand why President Correa is enduring the evident political cost of pushing for Legislative approval to exploit the ITT camps. The $2.5b per year in revenues for around 20 years, seem insufficient to achieve the economic transformation the government link...

Green Light for the ITT
ECUADOR · In Brief · 18 Sep 2013

The Commission of Bio-Diversity of the National Assembly approved last night the request from President Correa to declare the ITT oil camp of economic priority.  This approval virtually gives the government green light to exploit the oil camps of Tambococha, Tiputini and Ishpingo located in the Y...

Still Slowing, with Construction and Communications at the Force
ECUADOR · Forecast · 26 Aug 2013

Executive Summary The GDP growth slowdown that began in Q3 2011 persists, as the government is receiving lower oil revenues, and the economy is absorbing public investment less efficiently. The economy grew 4.8% y/y in Q4 2012, and 1.2% q/q – but in Q1 2013, growth rose just 0.2% q/q, and 3.5% y/...

Our Dignity is not for Sale
ECUADOR · Report · 23 Jul 2013

Executive Summary Though Ecuador decided it wasn’t in its best interest to provide political asylum for fugitive American intelligence contractor Edward Snowden, the damage to Ecuador’s trade relations with the United States has been done. Fifteen products, or 17% of Ecuador’s non-oil exports, wi...

Ecuador Renounces to ATPA
ECUADOR · In Brief · 27 Jun 2013

Minister of Industries and one of Correa’s right hand announced this morning that “Ecuador gives up unilaterally and irrevocably to the trade protection under the ATPA treaty”. It is difficult to assess this statement either as provocative or irrelevant. On one side the agreement would have expir...

Assuming Absolute Power
ECUADOR · Report · 27 Jun 2013

Executive SummaryThe "steamroller" – as the new Congress is nicknamed – recently passed two key laws: the first granting the president absolute power over communication, the second appearing to ease mining concession terms for corporations. Now the president, through his delegate in the to-be-cre...