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Friday April 3 is a mandatory national holiday in Ecuador. Banks are closed through Sunday, government offices shut down, but supermarkets and pharmacies stay open. President Noboa's VAT reduction to 8% on tourism services kicks in for the long weekend.
Ecuador returned to international capital markets in January 2026 for the first time since its 2020 debt restructuring, selling $4 billion in sovereign bonds across two tranches. The move included a $3 billion debt buy-back and sent country risk plummeting from over 2,000 points to 460.
The European Commission concluded negotiations on a Sustainable Investment Facilitation Agreement (SIFA) with Ecuador -- the EU's first such deal with any Latin American country. The agreement focuses on streamlining investment authorizations, improving transparency, and includes a first-of-its-kind annex on sustainable energy and raw materials.
The IMF reached a staff-level agreement on the fifth review of Ecuador's $5 billion Extended Fund Facility on March 31. If approved by the Executive Board, Ecuador will receive a $394 million disbursement, bringing total draws to $3.33 billion -- 66% of the program.
The Banco Central del Ecuador confirmed that GDP grew 3.7% in 2025, pulling the country out of the 2% contraction it suffered in 2024. Growth was driven by exports (+6.4%), investment (+5.6%), and household consumption (+2.7%). The 2026 forecast is a more modest 1.8%.
Ecuador's Semana Santa holiday runs April 3-5 with Good Friday as a national holiday. Banks and government offices close, IVA drops to 8% for tourism, and major processions take place across Quito, Guayaquil, Cuenca, and Riobamba. Here's your practical guide.
Colombia has indefinitely suspended electricity exports to Ecuador as part of an escalating trade war. Ecuador normally imports 8-10% of daily demand from Colombia, and replacing that power with costlier generation is running approximately $2 million per day.
Ecuador and Colombia have imposed tit-for-tat tariffs reaching 50% on hundreds of goods, putting approximately $2.8 billion in annual bilateral trade at risk. Colombia has also suspended electricity exports and faces retaliatory pipeline fee increases from Ecuador.
Gasoline and diesel prices in Ecuador are expected to increase approximately 5% when the monthly band adjustment takes effect on April 12. Extra and ecopais gasoline currently at $2.89/gallon and diesel premium at $2.82/gallon are being pushed higher by WTI crude above $100/barrel.
Ecuador's government announced intentional homicides dropped 28% in March 2026 year-over-year, following a two-week nightly curfew in four provinces. The curfew provinces -- Guayas, Los Rios, El Oro, and Santo Domingo -- are not major expat areas, but the security trend is nationally significant.
The U.S. Trade Representative and Ecuador formalized a reciprocal trade deal covering approximately $2.786 billion in goods. U.S. beef tariffs will phase to zero over three years, pork tariffs are mostly eliminated, and Ecuador secures preferential treatment for over 90% of the U.S. agricultural schedule.
Executive Decree 348 temporarily reduces Ecuador's IVA from 15% to 8% for tourism services from April 3-5 during Semana Santa. The cut covers accommodation, food and beverage, tourist transport, travel agencies, and ecotourism operations.
