Despite the VAT increase, Ecuador has three times less inflation than the United States – 2024-03-29 16:45:15

Ecuador’s inflation has been up to three times lower than that of the United States between 2016 and 2023 according to official figures.

Well, US inflation has fluctuated between 1.57% to 7.40% annually. While the Ecuadorian inflation has fluctuated from -0.93% to 3.74%.

Despite the measure of the former president, a fugitive from justice and asylum in Belgium, Rafael Correa after the 2016 earthquake, reason why the VAT increased from 12% to 14%, inflation in Ecuador went from 1.12% to -0.2% annually. In that period, the United States had a price increase of 2.2% in 2016 and 2.18% in 2017. In 2022, inflation in El Salvador was 7%.

In this way, the increase in prices in the Ecuadorian economy is very similar to that of Panama. Only in 2022, Panamanian inflation of 2.9% was lower than that of Ecuador, a situation that remained throughout the government of former President Guillermo Lasso.