Ecuadorian President Daniel Noboa has projected the country’s economy will grow by over 4% in 2025, significantly surpassing the Central Bank of Ecuador’s (BCE) forecast of 1.5%.
Noboa, who took office in November 2023, credits his administration’s fiscal policies for stabilizing public finances and creating conditions for growth.
Speaking on a local radio station in El Oro province, he described 2024 as a year of financial adjustment and positioned 2025 as a turning point for economic progress.
Noboa’s strategy focuses on injecting liquidity into the economy through targeted initiatives. His government has prioritized financing for housing, entrepreneurship, and public infrastructure projects while addressing outstanding debts, particularly in the healthcare sector.
These measures aim to boost domestic demand and create jobs in key sectors like construction and services. However, Ecuador faces significant hurdles.
The BCE reported a 1.5% GDP contraction in the third quarter of 2024 compared to the previous year, reflecting ongoing economic struggles. The International Monetary Fund (IMF) projects Ecuador’s growth at just 1.2% in 2025, well below regional averages.
Ecuador’s Economic Challenges
Rising crime rates, energy shortages, and dependency on oil exports—accounting for 30% of total exports—continue to weigh on the economy. Noboa has sought to attract foreign investment through public-private partnerships (PPPs).
He has secured $10 billion in infrastructure projects, which are expected to generate tens of thousands of jobs. Reforms to Ecuador’s PPP framework have improved investor confidence, with backing from institutions like the World Bank.
Political uncertainty adds complexity as Noboa faces a runoff election against leftist candidate Luisa González in April. International markets favor Noboa’s pro-business agenda.
However, his ability to deliver on growth promises will depend on navigating entrenched challenges. For investors and policymakers, Ecuador’s trajectory offers critical insights into balancing fiscal reform with social and political stability.
