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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.
Ecuador shipped 125,200 tonnes of shrimp in January 2026, a 23% increase year-over-year. China remains the top buyer at 49.5% of volume, though its share has declined from 54.2% in 2024. The industry projects a 15% increase for the full year.
Banco Bolivariano issued Latin America's largest biodiversity bond at $120 million, backed by IDB Invest ($50M), IFC ($50M), and FMO ($20M). The 5-year bond funds sustainable agriculture, freshwater and marine ecosystem protection, waste management, forestry, and ecotourism.
The World Bank forecasts Ecuador's economy will grow just 2% in 2026, among the lowest rates in Latin America. A fiscal deficit of 3-4% of GDP, expiring security contributions, weakening oil receipts, and likely tax reform paint a challenging picture.
Ecuador is positioned to become the world's second-largest cocoa grower behind Cote d'Ivoire. Anecacao projects exports exceeding 623,000 metric tons in 2026, up from 375,720 MT in 2023. The country is targeting 800,000 MT by the end of the decade.
LATAM Ecuador launched the first-ever direct flight from Cuenca to the Galapagos Islands on March 31. The twice-weekly Airbus A319 service starts at $310 round-trip and eliminates the need for an overnight layover in Quito or Guayaquil.
An electoral judge suspended Citizens' Revolution (RC), former President Rafael Correa's party, for nine months — just two days after a complaint was filed and without a defense hearing. The timing effectively bars the party from registering candidates for 2027 local elections.
Holy Week runs Palm Sunday (March 29) through Easter Sunday (April 5). Good Friday April 3 is the national holiday. Holy Thursday April 2 is NOT a holiday unless the government issues a special decree. Banks, government offices, and most businesses close April 3.
After devastating blackouts throughout 2024 and into 2025, Ecuador's electricity outlook is the most optimistic in over a year. Heavy rains have refilled major reservoirs, Mazar dam hit maximum capacity, and a new 200 MW plant is online. But risks remain.
Ecuador's 2026 budget includes no allocation for IESS medical care, leaving the social security system with an estimated $1 billion shortfall. Medication shortages and emergency room waits of 4-8 hours are already widespread.
Holy Week runs March 29 through April 5 this year. Good Friday (April 3) is a non-recoverable national holiday. Holy Thursday is NOT a public holiday. Here is what expats need to know about closures, events, and travel.
Ecuador's tax authority SRI has implemented new withholding rates effective March 1 under resolution NAC-DGERCGC26-00000009. The 2.75% rate has been eliminated and replaced with a 5% bracket, and the default withholding rate has increased to 3%.
