IMF Staff Country Reports

This paper discusses IMF’s 2024 Article IV Consultation and First Review under the Extended Arrangement under the Extended Fund Facility and Financing Assurances Review for Ecuador. The Article IV consultation discussions considered strategies to strengthen fiscal sustainability while safeguarding priority social and investment spending. Ecuador has made significant progress in the implementation of its economic reform program, meeting all end-August 2024 quantitative performance criteria and indicative targets for the first review and advancing important structural reforms. The authorities continue to work on enhancing the social safety net by broadening the coverage of the social registry and gradually expanding cash transfer programs. This will help increase government support to the most vulnerable and mitigate the impact of fiscal consolidation on those groups. The authorities’ strong and decisive policy efforts helped safeguard macroeconomic stability, strengthen the fiscal and external positions, and protect vulnerable groups amid a challenging environment.