Ecuador: Fifth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

This paper highlights Ecuador’s Fifth Review under the Extended Arrangement under the Extended Fund Facility. Economic growth continues to exceed expectations amid low inflation; labor market conditions are improving; and the current account continues to post sizable surpluses, supporting a sustained increase in international reserves to record-high levels. The authorities are making significant progress in the implementation of their economic reform plan. Ecuador has successfully regained access to international capital markets. The authorities adopted measures to address the fiscal underperformance of late 2025 and return to the program’s fiscal consolidation path, while creating space for priority social and investment spending. The authorities are also advancing their ambitious structural reform agenda to strengthen fiscal sustainability and boost private investment and job-rich growth, while protecting the most vulnerable. Structural reforms to boost competitiveness and create jobs remain a key focus. The authorities are working to attract private investment into high-potential sectors, including mining, hydrocarbons, and energy.