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Moreno will face significant headwinds in Ecuador

Tuesday, June 6, 2017

Subject

The outlook for the new government.

Significance

President Lenin Moreno, who began his four-year term on May 24, faces several short- and medium-term challenges. His most immediate concern will be to restore growth and maintain economic stability. Containing the fallout from corruption scandals and improving public finances are other key challenges Moreno will face in the opening phase of his presidency.

Impacts

  • Dealing with the fallout from the Odebrecht scandal will be an early test of Moreno’s presidency.
  • Exporters will press the government to secure new trade deals as dollar strength continues to hit their global competitiveness.
  • Trade liberalisation will create new economic tensions as competition within the domestic market intensifies.
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