Ecuador’s economic risk indicator drops; Economy ends 2024 in recession; City sponsors fanesca market tour; Maduro calls election a ‘fraud,’ Noboa a ‘dictator’

Ecuador’s economic risk indicator dropped 562 points on Monday, to 1,282 from 1,844, a day after Daniel Noboa won the presidential runoff election. Discounting government debt defaults and payment moratoriums during the Rafael Correa presidency, the drop was the largest since January 2000, when the country adopted the U.S. dollar as its currency, according to Ecuador’s Central Bank.

“The election result contributed to a perception of lower economic risk to international investors considering making new investments in the country,” Central Bank President Guillermo Avellán said. “It recognizes the government’s efforts to put public finances in order and meet its external obligations.”

It’s the week for Cuenca’s famous Easter soup, fanesca, and the city is sponsoring a fanesca tour of municipal markets.

Avellán added that the 1,282-risk rating is still “very high” but will drop as the government pays debts and develops budgets “to meet internal demands.”

A country’s risk indicator is a measure of the risk of investing in a particular country, as determined by the World Bank.

City sponsors fanesca market tour 
For those who want to sample Cuenca’s traditional Easter soup, fanesca, the Cuenca Markets Directorate is sponsoring a “fanesca tour” of city markets on Wednesday, April 16.

Soup will be served at the six largest markets beginning at 9:30 a.m. at the 4 de Noviembre market in Ricaurte. Other servings times are: 10:30 a.m. at 27 de Febrero market; 11:30 a.m. at Feria Libre (El Arenal); 1:30 p.m. at 10 de Agosto market; 2:30 p.m. at 9 de Octubre market; and 3:30 p.m. at the 12 de Abril market.

Economy ends 2024 in recession
Ecuador’s Central Bank (ECB) reported Monday that 2024 was a “recession year,” with the economy contracting by 2%. The bank blamed the electricity crisis, lower investment and a drop in consumer spending for the contraction.

It was the first drop in Gross Domestic Product since 2020, the first year of the Covid-19 pandemic, the bank said.

According to the ECB, household consumption fell by 1.3% while government spending dropped 1.2% in 2024. The bank said that foreign investment for 2024 was the lowest in 14 years

Maduro calls election a ‘fraud,’ and Noboa a ‘dictator’
Venezuela President Nicolás Maduro said Monday that the reelection President Daniel Noboa was a “horrific fraud.” “They are imposing political hegemony in Ecuador with a grotesque and unheard-of fraud,” Maduro said. “They are reestablishing the colonialist project financed by the U.S. Noboa is now a dictator.”

Maduro cited polls showing Citizens Revolution candidate Luisa González leading Noboa prior to the election. “She was ahead in all the polls by as much as 8%,” he said. “There is no way she could lose without the fraud perpetrated by the imperialists.”

Ironically, almost all observers of Maduro’s 2024 Venezuelan election victory considered it fraudulent. Polls showed his opponent, Edmundo González, with a lead of more than 30%.