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Special Report: The end of the Citizen’s Revolution in Ecuador? (ISSN 17414474)

Economic pressures

Determining the real state of the economy in 2017 has become part of the bitter controversy now playing out within Alianza PAIS. Both sides agree that the fall in international oil prices which started in late 2014 clearly had a negative impact in Ecuador, not least because the oil and gas sector represents 5.5% of GDP, roughly half of total exports and one-quarter of fiscal income: the drop in export value therefore had a very significant downward effect on activity levels in the local economy. The 2016 earthquake aggravated the downturn in the hydrocarbons sector which had deepened in 2015 forcing the government to take out additional debt to cover reconstruction costs.

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