Ecuador: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Rephasing, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

This paper presents Ecuador’s Third Review under the Extended Arrangement under the Extended Fund Facility (EFF), Request for Rephasing, and Financing Assurances Review. The Ecuadorian authorities have made significant progress in the implementation of their economic program, supported by the EFF. Real gross domestic product (GDP) is recovering much faster than expected amid low inflation, driven by a recovery in domestic demand and record nonoil exports. Real GDP is now projected to rise by 3.2 percent in 2025, up from 1.7 percent projected at the time of the second review. Inflation is projected to remain low and well below that of trading partners, helping to strengthen competitiveness. All end-August 2025 quantitative performance criteria and most indicative targets for the third review have been met, some with significant margins. The authorities have made substantial progress in the implementation of structural benchmarks, notably on fiscal, governance, and growth-enhancing reforms. The authorities are committed to implementing new structural benchmarks to further advance their reform agenda.