Ecuador—Tax Reforms and the Economy

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On May 24, 2022, the Ecuadorian government, led by Guillermo Lasso, celebrated its first year in power. For the second year of its four-year term, the government has opted to renew its communication strategy and has set aside (for now) the possibility of a referendum and the option to call for early elections. There have also been major changes within the cabinet and the general administration.

During his address to the nation, Lasso announced the primary accomplishments of the current government, which included:

  • the extreme poverty rate having fallen to 10.5% from 15.4% as of December 2021;
  • a reform to reduce tariffs on more than 600 items, which has resulted in significant savings in raw materials and capital goods;
  • signing of private investment contracts totaling $5 billion in value and identification of an investment portfolio of $39 billion; and
  • the intention to enter into 10 new trade agreements by 2025, including agreements with Mexico, Israel, and the…

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