At a Glance
- Current IMF membership: 190 countries
- Ecuador joined the Fund on December 28, 1945
- Quota: SDR 697.7 million
- Outstanding Purchases and Loans (SDR): 1207.87 million (March 31, 2020)
- Article IV/Country Report: March 21, 2019
IMF's Work on Ecuador
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How Taxes Can Support Growth and Reduce Inequality in Latin America and the Caribbean
December 14, 2021
Public debt ratios in Latin America and the Caribbean (LAC) increased by about 10 percentage points of GDP in 2020. With debt service costs rising, countries in the region are under pressure to cut public spending and/or raise taxes, even in the face of widespread needs to respond to the pandemic. Our recent Regional Economic Outlook shows that well-crafted tax reforms can support growth while helping countries maintain fiscal sustainability. Importantly, these reforms can help reduce income inequality—an important objective in one of the most unequal regions in the world.
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October 7, 2021
Series:Country Report No. 2021/228
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October 7, 2021
Series:Country Report No. 2021/229
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September 30, 2021
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Transcript of the Western Hemisphere Department Regional Economic Outlook Press Briefing
February 8, 2021
Regional Economic Outlook
Western Hemisphere
Regional Economic Outlook: A long and winding road to recovery
October 2021An economic recovery is underway in Latin America and the Caribbean (LAC) but the pandemic still casts shadows on much of the region. The recovery was robust in the first quarter of 2021 but lost momentum in some countries in the second quarter, reflecting the rebound in COVID-19 cases. Real GDP is projected to grow by 6.3 percent in 2021, followed by a more moderate growth of 3 percent in 2022, but would not catch up with pre-pandemic trends in the medium term as persistent weakness in labor markets raises risks of scarring. Broadly favorable external conditions, high commodity prices, and pent-up demand support short-term growth, while monetary and fiscal policy reversals work in the other direction. Risks to the outlook are tilted downward. Main downside risks are the emergence of more transmissible and deadlier COVID-19 variants, tightening of global financial conditions, sovereign debt rollover risks, and social unrest as a year with heavy election schedule looms. Fiscal policy should allocate sufficient resources for health spending, including vaccination, and continue to support households and firms in a more targeted fashion while the pandemic persists, backed by credible assurances of medium-term debt sustainability to maintain access to finance. Monetary policy has started to address inflationary pressures but should continue to support economic activity insofar as the dynamics of inflation expectations permit. Financial policy should shift from blanket support to targeted support of viable firms, to ensure that necessary labor and capital reallocations are not hindered. Supply-side policies should foster inclusive growth, including through progressive and growth-friendly tax reforms and measures to intensify climate change adaptation and mitigation.