Breaking news, politics, economy, visas, safety, and lifestyle updates for expats living in Ecuador.
Los Ríos rice farmers are opening their winter harvest with no real buyers. The short version: an estimated 20% smaller crop, buyers paying $29/quintal against a $34 minimum support price, and 95,000 tons in losses to flooding and drought. The bottleneck is the Colombia trade war blocking last season's surplus from export.
The April 12 fuel price hike is already flowing through to family budgets on the coast. One south Guayaquil family reports their nephew's round-trip school transport jumped from $50 to $60 per month. The coastal school year just started — and the cost structure changed with it.
WTI crude oil tumbled more than 15% to $95/barrel on April 8 after Trump postponed his Iran infrastructure strike threat, then rebounded 7.3% to $101.28 on April 9. For Ecuador — both an oil exporter and a country where consumers pay market fuel prices — this volatility cuts both ways.
Energy sector expert Marco Acuña warned on April 8 that Ecuador has registered an electrical generation deficit that could trigger power cuts during peak hours. The government disagrees, but Colombia's energy cutoff and Coca Codo Sinclair's chronic underperformance create real vulnerability.
President Noboa has declared 2026 'the year of construction,' with sector sales up 20.5%, real estate transactions up 17.8%, and $6.5 billion in purchase-sale promises on the books through 2028. Government incentives include preferential mortgages, IVA refunds for builders, and a new social housing law.
Ecuador's national hotel occupancy reached 40.3% in the most recent reporting period, up 3.6 percentage points year-over-year. The recovery is real but modest — pre-pandemic occupancy averaged 50-55% nationally. Coastal and Galápagos properties are leading the rebound.
WTI crude surged past $100/barrel in early April, driven by the Middle East conflict and Strait of Hormuz disruption. For Ecuador, it's a double-edged sword: oil exports bring in more revenue, but the fuel band system passes the pain directly to consumers at the pump.
Ecuador will formally accept its largest hydroelectric plant from Chinese builder Sinohydro by April 17, despite more than 7,600 documented fissures in critical equipment that the Comptroller ordered repaired. The settlement releases approximately $200 million in guarantees back to Sinohydro. The plant currently operates at less than half its 1,500 MW capacity.
Ecuador's monthly fuel price adjustment on April 12 could push low-octane gasoline past the $3/gallon mark for the first time in history. Extra and Ecopaís currently sit at $2.89/gallon; with the 5% monthly cap, they could reach $3.03. Diesel may hit $2.96. The driver: global oil price spikes from the Strait of Hormuz disruption.
The United States and Ecuador have finalized a reciprocal trade agreement that eliminates a 15% surcharge on $2.8 billion in non-oil Ecuadorian exports and opens Ecuador's agricultural market to US soybeans, dairy, beef, and poultry. Most-favored-nation treatment takes effect by August 2026.
Ecuador has slapped 50% tariffs on Colombian imports, threatened to cut electricity sales, and hiked pipeline transit fees by 900%. With $2.8 billion in bilateral trade at risk, Colombian products are getting more expensive and de-escalation talks are just beginning.
Ecuador's Semana Santa holiday generated an estimated 800,000 domestic trips and $70 million in economic activity. Manta led all destinations with 158,000 visitors and 80% hotel occupancy, while Amazon lodges hit 90%. A temporary VAT cut to 8% for tourism services sweetened the deal.