The latest: On February 21, the International Monetary Fund and the Ecuadorian government announced an agreement that will provide a USD4.2bn funding package. The IMF funds will support an economic policy plan laid out by the administration of President Lenín Moreno, and will accompany an additional USD6.0bn in funds from multilateral lenders

Key View

• Ecuadorian economic growth will slow in 2019, as President Lenin Moreno reduces public spending to rein in a wide fiscal deficit. 
• Public cuts will primarily come from capital expenditures and the public sector wage bill, which will undermine consumption and investment. 
• Fitch Solutions forecasts real GDP growth to slow to 0.8% y-o-y