By Marcelo M. Giugale, Vicente Fretes-Cibils, Eduardo Somensatto
The Ecuadorian society has conquer adversity with nice decision during the last few years. Periodic monetary crises, exterior shocks, or even usual mess ups proven the country's skill to deal with problems. regardless of those demanding situations, the rustic has maintained a ahead having a look point of view and has completed a few vital ambitions. monetary balance within the previous couple of years has given the distance for a interval of sustained monetary development. in this interval a number of improvement symptoms have more advantageous, and several other sectors of the economic system have established the dynamism and entrepreneurship that's found in the Ecuadorian tradition. This identify goals to impress a full of life dialogue among the realm financial institution, the recent Correa management, and the complete nation in addressing the unresolved concerns that require a considerate strategy
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The Ecuadorian society has conquer adversity with nice decision during the last few years. Periodic financial crises, exterior shocks, or even average mess ups proven the country's skill to deal with problems. regardless of those demanding situations, the rustic has maintained a ahead having a look standpoint and has accomplished a few vital ambitions.
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The law was based on fiscal policy rules that placed limits on the growth of expenditures, while providing for priority programs even in the face of cyclical changes in revenues. The outcome of the dollarization and the supporting policies has been a period of macroeconomic stability. The country has enjoyed the benefits of a favorable CONTEXT AND EXECUTIVE SUMMARY 7 external environment, which has meant low rates of inflation and declining interest rates. Domestic interest rates have fallen to single digits, and a more stable economic environment has given rise to a rapid extension of long-term financing, including mortgages.
During the same period the population classified as economically active rose by an average of 3 percent per year. Thus, employment creation has mirrored the growth in the economy (the long-term output elasticity of employment is slightly smaller than 1). Most of the employment creation, however, occurred in the informal and temporary job market, which currently accounts for more than half of the economically active population. Most disconcerting are the underemployment figures, which are above 45 percent.
The topics addressed include (i) maintaining fiscal discipline to ensure the continuity of a stable macroeconomic framework; (ii) accelerating and broadening economic growth through increased competitiveness, expanded opportunities, and greater employment generation; (iii) dealing effectively with the myriad problems affecting the energy sector; and (iv) broadening the benefits of growth through more inclusion, particularly for the rural sector of the economy. • Promoting sustainable and equitable social development.
Revisiting Ecuador's Economic and Social Agenda in an Evolving Landscape by Marcelo M. Giugale, Vicente Fretes-Cibils, Eduardo Somensatto
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