Florida Latin Connection

Ecuador’s economy probably grew in the first quarter at its fastest pace in two years as higher oil prices fueled government spending, boosting job creation and consumer demand.

Gross domestic product probably accelerated in the January- through-March period from the last quarter of 2010, when GDP rose 6.98 percent year on year and 2.6 percent from the third quarter, according to four economists surveyed by Bloomberg. That would be the biggest jump in GDP since at least 2008. The central bank is due to report first-quarter growth today.

Windfall oil profits for Ecuador, the Organization of Petroleum Exporting Countries’ smallest member, and a Chinese loan boosted government liquidity in the first quarter, allowing PresidentRafael Correa to raise spending on projects, including roads and hospitals, by 44 percent, said Vicente Albornoz, director and head economist of the Cordes research institute in Quito.

“This enormous public expenditure will reflect in economic activity, not necessarily greater production, but at least increased consumption,” Albornoz said yesterday in a phone interview from Quito. “You only have to walk down the street to see the new cars, full restaurants and malls packed with shoppers buying packages, it’s impressive.”    Read More:

http://www.bloomberg.com/news/2011-06-30/ecuador-first-quarter-gdp-grew-at-fastest-pace-since-2008-economists-say.html

Bloomberg/Gill/ 06/30/2011

Ecuador GDP Expanded at Fastest Pace Since 2008, Economists Say

Florida Latin Connection/ Arnoldo Varona, Editor

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