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IMF continues support after tax cut.(economy in Ecuador)(Brief Article)(Statistical Data Included)

Despite the dire warnings expressed earlier this year that Ecuador would face the immediate cessation of multilateral aid if the country did not implement an IMF-proposed hike in the rate of VAT, from 12%, to 14%; in the end, these fears seem misplaced. Although clearly unhappy that the country's Constitutional Court decided to overrule the executive in early August, forcing it to reinstate the 12% rate from Sept. 1, the IMF has been quick to reiterate its support for President Gustavo Noboa and his attempts to spearhead the country's economic revival. Indeed, Ecuador posted first quarter growth of 4.1%, and looks increasingly on course to be one of the fastest growing ...

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