Articles
Business intelligence and analysis on Ecuador
CAF Invests $450,000 in Ecuador's First National Competitiveness Policy, Signs Technical Cooperation Agreement at Economic Forum 2026 Launch
CAF — Development Bank of Latin America and the Caribbean — signed a $450,000 non-reimbursable technical cooperation agreement with Ecuador's Ministry of Production, Foreign Trade and Investment to design the country's first comprehensive national competitiveness policy. The agreement, titled 'Towards a New Competitiveness Policy for Ecuador,' was formalized at the Quito launch of CAF's II International Economic Forum, which convened 6,500 leaders from 70 countries in Panama City on January 28-30.
Chevron Arbitration Award Reduced to $215 Million After Ecuador Wins 93% Savings on Original $3.35 Billion Claim — Procuraduría Weighs Annulment
The Permanent Court of Arbitration in The Hague has reduced the damages Ecuador must pay Chevron from $220.8 million to $215.07 million following a correction request, while the Procuraduría General del Estado claims a 93% savings against Chevron's original $3.35 billion claim. Procurador Juan Carlos Larrea announced Ecuador has three months to decide whether to seek annulment of the award, negotiate payment terms, or challenge the ruling — as indigenous communities in the Amazon who suffered the original contamination have still received no compensation.
ProEcuador Absorbed Into Ministry of Production as Noboa's Efficiency Plan Cuts Executive Branch Institutions by 41% — Export Promotion Staff Under Evaluation
Ecuador's export promotion agency ProEcuador has been absorbed into the Ministry of Production, Foreign Trade and Investment under President Noboa's Administrative Efficiency Plan, which reduced executive branch institutions by 41% and ministries from 20 to 14. ProEcuador's staff — responsible for operating 24 commercial offices in 21 countries — are under evaluation as the restructuring takes effect during a period when Ecuador is simultaneously finalizing trade agreements with the United States, Canada, and the UAE.
Noboa Relocates Federal Government to Guayaquil After Mayor Alvarez Arrested on Organized Crime and Money Laundering Charges
President Daniel Noboa announced on February 13 that Ecuador's federal government will operate from Guayaquil for several weeks following the arrest and imprisonment of Mayor Aquiles Alvarez on organized crime, money laundering, and tax fraud charges. From Guayaquil, Noboa is launching accelerated housing programs, university student residences, job training initiatives, and enhanced citizen security operations — effectively federalizing governance of Ecuador's largest city and main commercial port.
Ecuador's $46.3 Billion 2026 Budget Approved With $2.2 Billion Public Investment Plan Targeting 1,471 MW of New Energy Capacity and 388 Infrastructure Projects
Ecuador's National Assembly has approved a 2026 budget of $46.3 billion — a 13% increase over 2025 and equivalent to 33.27% of GDP. The Annual Investment Plan allocates $2.2 billion across 388 projects, with the centerpiece being a $2.43 billion electric power expansion plan targeting 1,471 MW of new renewable capacity through 2030, including $913 million for 963 MW of solar installations. The construction sector is forecast to grow 4.1% in 2026.
Ecuador Expands US Security Partnership With Surveillance Drones, Military Advisors, and Port Monitoring Systems to Combat Drug Trafficking
President Noboa has announced a significant expansion of security cooperation with the United States, including the deployment of American military advisors, surveillance drones, and advanced port monitoring systems. The partnership — part of the broader US-Ecuador strategic alignment that underpins the recently concluded trade agreement — targets drug trafficking networks and Colombian-origin armed groups operating in Ecuador's border provinces and port facilities.
World Bank Approves $900 Million Job Creation DPF and $200 Million Disaster Risk Facility, Reinforcing Ecuador's Fiscal Consolidation Path
The World Bank approved a $900 million Development Policy Financing operation for job creation and fiscal sustainability, alongside a $200 million disaster risk management facility, in November 2025. The combined $1.1 billion package supports Ecuador's fiscal consolidation -- with the deficit expected to narrow to just 0.7% of GDP in 2025 -- and positions the country to absorb climate and seismic shocks without derailing macro stability.
Noboa Enters Second Term Under Pressure: 60% Disapproval, Referendum Defeat, and Record $230M Security Pledge
President Daniel Noboa begins his second term confronting a stark contradiction: macroeconomic indicators are the strongest in a decade -- country risk at 460 points, reserves at $9.975 billion, inflation at 2.1% -- yet 60% of Ecuadorians disapprove of his administration and 72% see a negative future, according to CIESS polling. The government pledged a record $230 million security investment after 2025 registered the most violent year in the country's history.
CAF Launches Economic Forum 2026 in Quito and Signs $450,000 Technical Cooperation Agreement to Design Ecuador's National Competitiveness Policy
CAF (Development Bank of Latin America and the Caribbean) held a high-level event in Quito to launch the II International Economic Forum and signed a $450,000 non-reimbursable technical cooperation agreement with Ecuador's Ministry of Production, Foreign Trade and Investment. The agreement will fund the design of a comprehensive national competitiveness policy aimed at improving productivity across Ecuador's non-extractive sectors.
CAF and Ecuador Sign Technical Cooperation Agreement on Competitiveness at International Economic Forum
Ecuador and CAF signed a technical cooperation agreement on competitiveness policy at the II International Economic Forum in Panama City, where President Noboa outlined the country's economic stability and security strategy before 6,500 participants from 70 countries.
Ecuador's National Assembly Opens Debate on $1.4bn Tax Reform Package
Ecuador's National Assembly began formal debate on a sweeping tax reform package projected to raise $1.4 billion annually, including a new digital services tax and expanded VAT base, as the government seeks to meet IMF fiscal targets.