Economic challenges rise in Ecuador and Dominican Republic

Ecuador has recorded the second-highest credit delinquency rate in Latin America at 4.5%, trailing only Argentina. According to World Bank data, this rate exceeds those of Peru (4%), Brazil (3.9%), Bolivia (3.1%), and Colombia (3%). High delinquency levels can force financial institutions to increase provisions and tighten credit conditions.

In the Dominican Republic, Moody’s has warned about the impact of “rigid spending” on public finances. This type of expenditure, which includes debt interest, public salaries, and subsidies, is difficult to reduce due to legal or constitutional mandates. The agency noted that while rigid spending has increased in the Dominican Republic, investment in public works and infrastructure has declined, limiting the government's ability to reallocate resources during revenue shortfalls.