Ecuador’s Lasso weathers early storm but clouds loom

Significance

He appears to have weathered this early political storm, achieving notable successes in areas such as tax reform. However, the political outlook remains uncertain, with a likely COVID-19 resurgence heralding new challenges in 2022.

Impacts

• Containing the spread of the Omicron variant will be a priority for Lasso in the coming months.
• A pandemic resurgence would place downward pressure on economic growth and tax collection.
• Tax reforms will please international investors and support efforts to attract foreign direct investment to stimulate economic activity.