What Happened: According to data released by the Ecuadorian Central Bank on June 17, Ecuador's economy is expected to contract by 0.2 percent in 2019, which would place it into recession, El Comercio reported.
Why It Matters: The Ecuadorian economy continues to face significant headwinds — mainly in the form of its over-reliance on oil exports, slow growth in non-oil exports, and the country's use of the U.S. dollar (which complicates Ecuador's ability to trade with countries that have currencies significantly weaker than the dollar).
Background: Ecuador has also struggled to expand its foreign trade due to the dollar's strength, as well as its underdeveloped non-oil economic sectors (which are largely agricultural).
- Ecuador Takes a Business-Friendly Turn (July 2, 2018)
- With a New President, Ecuador Begins Leaving Venezuela Behind (Oct. 17, 2017)