Breaking news, politics, economy, visas, safety, and lifestyle updates for expats living in Ecuador.
International diesel and gasoline benchmarks rose sharply in July, reducing the chance of another exceptional price reduction in Ecuador in August. The next domestic adjustment is due on August 12.
New customs reforms took effect July 29 and expand the circumstances in which goods can be declared abandoned. The rules include a one-month deadline after detention for tourists seeking to regularize or recover temporarily imported vehicles.
Ecuador's economy has shown growth in 2025 and early 2026, but informality remains above 60% of the labor force and only about three in 10 Ecuadorians have adequate employment.
Ecuador's tax authority has created a mandatory registry for electronic-invoicing system providers. Businesses and taxpayers using third-party billing platforms will also have a new RUC-identification requirement once the resolution is published.
Ecuador's largest credit cooperatives still have delinquency above pre-recession levels. The pressure is strongest in microcredit, the segment tied most directly to small businesses and vulnerable borrowers.
Electronic payments are becoming more common in Ecuador, while cash withdrawals from savings accounts fell 22% in 2025. For expats, the shift matters at pharmacies, restaurants, markets, banks, and small shops.
Ecuador expects to import electricity from Colombia during the dry season, but Colombia is warning about its own demand growth, delayed projects, and lower reservoir water. The issue matters because Ecuador could face a severe-drought deficit of 1,300 MW.
Cacao, coffee, bananas, and rice are all under market pressure as El Nino risk rises. The immediate story is export pricing, but the longer-term watch point is food-cost pass-through over the next 12 to 20 months.
Colombia has begun issuing rice import permits after nearly five months of suspended land trade. Ecuador’s rice sector expects a gradual restart, with private projections above 50,000 tons for the rest of the year.
Ecuador and Canada signed their trade agreement in Ottawa on July 24, bringing a 26-chapter framework covering goods, investment, customs, and digital commerce.
Oil-export income reached USD 1.561 billion by July 23, nearly matching the USD 1.585 billion recorded in all of 2025.
Ecuador consumed 3% less gasoline overall in the first half of 2026, while Extra demand fell 8%. The report links the decline to higher prices, household pressure, and temporary supply shortages.
