President Lenín Moreno announced a series of austerity measures on Tuesday, August 21, intended to rectify the government's fiscal deficit. One of the announced measures is a reduction in fuel subsidies, which will raise the price of gasoline from approximately USD 2.20 per gallon to USD 2.98. Other measures include the elimination of seven ministries and the consolidation of several other governmental institutions. Additionally, the government will seek to shrink public corporations in the postal, telecommunications, and air industries. The austerity measures may cause protests throughout Ecuador, notably in the cities of Quito and Guayaquil. The possibility of violence between protesters and security forces at all potential protests cannot be ruled out.
The Ecuadorean government is implementing the measures in an effort to lower the fiscal deficit from 7.3 percent of the GDP to 4.3 percent by the end of 2018.
Individuals in Ecuador are advised to monitor developments to the situation, avoid all demonstrations as a precaution, and adhere to all instructions issued by the local authorities.
Copyright and Disclaimer