Economy & Business - March 2022

Ecuador’s fiscal deficit has fallen significantly from over US$7bn in 2020 (around 7% of GDP), to US$3.7bn in 2021 (around 3.5% of GDP) in 2021, thanks to a recovery in tax and oil revenue as well as adjustments in spending. President Guillermo Lasso’s government estimates that this year the deficit will fall further, to around 2% of GDP, a projection it may even surpass with the help of an unexpected oil income windfall.