Ecuador’s Public Debt Hits 65.7% of the Economy
Ecuador public debt hit 65.7% of the economy by mid-2026, growing faster than output as deficits and falling oil revenue pile up. The post Ecuador’s Public Debt Hits 65.7% of the Economy appeared first on The Rio Times .
Ecuador's public debt has surged to 65.7% of the nation's economy, according to recent government data. The debt figure, equivalent to US$88.8 billion, has been growing faster than the economy for at least the past seven years. Interest payments now account for 3.3% of gross domestic product each year, outpacing recent economic growth.
From 2019 to 2026, public debt increased an average of 5.1% annually, while the economy grew by only 3.1% per year. The country's debt is expected to grow to 2-2.3% in 2026, marking a slowdown from 3.7% growth in 2025. The government's spending has consistently exceeded its tax revenue and oil sales, leading to a budget gap of US$5.3 billion in 2025, a 71% increase from the previous year.
Oil income dropped by 15% in 2025, providing only one-third of government revenue, with production at its lowest level in over two decades. Despite these challenges, Ecuador has secured a four-year loan program from the International Monetary Fund worth about US$5 billion, with the fund's board increasing its funding review in April 2026.
S&P Global Ratings raised Ecuador's credit score in August 2026, citing improved fiscal management, although the country remains rated below investment grade.
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