Ecuador’s country risk was located at 1,180 points on April 4, 2024, registering a drop of 53 points since March 31, when it was at 1,233 points.
In this way, this indicator reached the lowest level recorded since February 5, 2023.
Increase in VAT and high oil prices affect the reduction of country risk
Ecuador’s country risk has been decreasing since January 9, 2024, when it was at 2,039 points.
This drop is due to the announcement by the Government of Daniel Noboa, who on January 12, 2024 proposed the increase in the Value Added Tax (VAT) from 12% to 15%, in the then draft Law to Confront the Internal Armed Conflict.
The regulations were approved on February 6, 2024 and the new rate increase began to take effect on April 1, 2024. The Government expects to receive an additional USD 1.3 billion per year with the increase.
It is also due to a new credit program with the International Monetary Fund (IMF) and the increase in the price of oil.
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