Ecuador: Second and Third Reviews Under The Extended Fund Facility Arrangement and Request for a Waiver of Nonobservance and Modifications of Performance Criteria — Press Release and Staff Report
IMF Staff Country Reports, December 20, 2019
Source details
- Canonical URL
- Ecuador: Second and Third Reviews Under The Extended Fund Facility Arrangement and Request for a Waiver of Nonobservance and Modifications of Performance Criteria — Press Release and Staff Report
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Bibliographic details
- Published: December 20, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513523859.002
Summary findings
- The Ecuadorian authorities have continued to make progress in strengthening the country’s fiscal and external positions.
- The authorities have appropriately recalibrated their economic program to include a more moderate fiscal consolidation and international reserves’ paths in response to recent developments and to protect pro-poor growth and social spending.
- Public financial management reforms are paramount to secure fiscal sustainability in the longer term.
- Reform of the central bank aimed at strengthening central bank autonomy, accountability, and governance will be instrumental in:
- supporting the dollarization regime,
- boosting reserves,
- ensuring their prudent management.
- Efforts to raise competitiveness should continue to focus on:
- improving transparency,
- strengthening governance,
- increasing efficiency of the public sector,
- creating conditions in the labor market to facilitate hiring and female participation.
Policy recommendations and program adjustments
- Recalibrate fiscal consolidation to be more moderate to protect pro-poor growth and social spending.
- Pursue public financial management reforms to secure long-term fiscal sustainability.
- Advance central bank reform to strengthen autonomy, accountability, and governance to support the dollarization regime and prudent reserve management.
- Continue structural reforms to raise competitiveness through transparency, governance, public-sector efficiency, and labor-market measures to facilitate hiring and female participation.
Content in this bundle
- Executive Summary