IMF Staff Country Reports

This paper presents Ecuador’s Fourth and Fifth Reviews under the Extended Arrangement under the Extended Fund Facility (EFF), Request for a Waiver of Nonobservance of Performance Criterion, Rephasing of Access, and Financing Assurances Review. Ecuador’s EFF-supported economic program aims to stabilize the economy, ensure fiscal and debt sustainability, expand the coverage of social assistance programs to protect the vulnerable, promote a transparent management of public resources, and lay foundations for sustainable and inclusive growth. The economy rebounded more strongly than expected in 2021 at 4.2 percent, bolstered by a well-executed vaccination campaign that allowed for a steady reopening of the economy. The recovery will continue in 2022, but at a more moderate pace of 2.9 percent. Inflationary pressures, mostly due to higher commodity prices, are expected to rise. The Executive Board approved the authorities’ request for a waiver of nonobservance of the end-December 2021 performance criterion on the overall balance of the budgetary central government and the oil derivatives financing account based on the corrective actions the authorities have already taken and have committed to take. Continued improvement in public financial management and advances in transparency and anti-corruption would strengthen efficiency and accountability of the public sector.