Just four days into his term, Ecuador’s President Daniel Noboa took a decisive step by planning to propose a crucial law.
This law, the Urgent Economic Law for Job Generation, aims to boost employment. He will present it to the National Assembly.
His announcement came via a social media video, where he outlined Ecuador’s economic challenges.
In the video, Noboa and Juan Carlos Vega, the Minister of Economy and Finance, asked for support.
They described the nation’s economic situation as extremely tough. They urged support from civil society, private enterprises, and every Ecuadorian.
This law was Noboa‘s first economic action as president. It’s designed to pull Ecuador out of its current crisis and set a course for a better future.
The law focuses on security, job creation, and aid for the vulnerable.
Additionally, the Presidential Communications Secretariat revealed more about Ecuador’s economic state.
The government faces large debts and a meager fiscal reserve. It owes $2.872 billion to various sectors. The Treasury’s Single Account holds only $184 million.
Ecuador’s projected fiscal deficit is another concern. It’s expected to exceed $5 billion by 2023’s end, making up 5% of the GDP.
The nation’s total debt stands at $63 billion. The current economy struggles to create formal, suitable jobs, which leads to increased insecurity and violence.
Existing labor laws are also problematic as they promote informal work. Looking to 2024, Noboa sees further challenges.
Further Challenges
These include a decrease in the Foreign Exchange Tax and pressing issues like the El Niño climate event, energy crises, and health and security concerns.
Noboa emphasized the need for united efforts to tackle these economic issues. He acknowledged that there are no easy solutions.
He called on all Ecuadorians, especially those more fortunate, to support these efforts.
The President also mentioned collaborations with international credit agencies. These efforts aim to secure additional funding for emergency and future needs.
This approach shows Noboa’s commitment to addressing Ecuador’s economic hurdles proactively.