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Article: The economic situation in Ecuador deteriorates.
- Article from:
- Market Latin America
- Article date:
- July 1, 2005
CopyrightCOPYRIGHT 2005 Media Contact Resources, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It is not that long ago that Ecuador's economy suffered a meltdown of extraordinary proportions. In 1999, GDP contracted 6 percent. The banking system collapsed. Poverty increased sharply. The country defaulted on its foreign debt, and oil revenues were hit by falling prices as natural disasters increased the misery of its citizens.
Since that time Ecuador's macroeconomic statistics have recovered, and there did appear to be some reason for hope. But the average citizen has not seen any improvement in economic security.
A recent populist revolt sent the country's fiscally conservative President packing, and the new President has vowed to use oil ...