Expat Community > Ecuador

CharlieCuenca
Joined 2014
Posts: 166

Let's manage the economy and see what happens...

9 years ago

For those of you that don't already know it, Ecuador is run by a heavy handed socialist named Rafael Correa. Like all megalomaniacs, he is trying to build and consolidate power and in spite of the constitutional limit of 2 terms as president, he is pushing to change the constitution to allow him to become president for life. Have we ever seen that before?

Along the way, Correa, like any good socialist would, figured he would "help" the national economy by instituting draconian import duties on all manner of goods. Sure, now we all have to buy locally produced goods or pay dramatically higher prices for the ones we now import. Ah, but Correa never thought that the citizens of HIS country would resort to a third alternative and just not buy the cheap crap produced here. But apparently, that's just what they are doing. Here is a translated article from the newspaper, "El Tiempo".

But fair citizens (and ex-pat legal residents alike) fear not. Socialists don't abandon their bad ideas, they just tweak them and you can be assured that is what Correa and his minions will do until they completely ruin the economy. How have the Castro's done in Cuba? How about Chavez and his successor in Venezuela? Argentina and Chile are already in the tank and Colombia and Peru are even more deeply mired in the third world than Ecuador. Bolivia? Are they still a country?
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Stores Close the Book on 2014
Posted on December 29, 2014 | Comments Off
As 2014 draws to a close, stores across Cuenca are looking back to see how they did over the last year. Some industries reported good sales, while many others remained stagnant or saw their sales drop.
Francis Paucar of the Black & White clothing store said their sales fell short of expectations during this first operating year. This was especially evident during December, as sales were 40% less than the previous month. Beginning today, the outfitter will offer a 50% discount on its merchandise to help move the old inventory out the door.
Another boutique manager, Byron Fajardo, reported that, while sales rose marginally on December 24 at the Addictione women’s clothing store, they did not come close to the volume seen in December of 2013.
Some speculate that sales are falling in the clothing sector because businesses have switched to national manufacturers instead of importing merchandise. This is likely due to the import restrictions implemented in October.
The toy industry also suffered due to importation restrictions. High taxes forced them to swap their international inventory for toys made in Ecuador, which severely limited their offering.
The household sector saw a drop in sales in 2014 as well. Patricio Barrera, manager of Almacenes España, reported a slight decrease in appliance purchases when compared to 2013. Traditionally, December has been a peak month when it comes to appliance sales, the months of May, October, and November were among the best for Almacenes España in 2014.
The shoe industry was another sector that experienced a decline in revenue. “It’s fallen by more than 50% from 2013 to 2014. If you sold 120 pairs of shoes for Christmas in previous years, then you would probably sell 25 this year,” said Pony Footwear manager Guillermo Llumiquinga. While products at Pony Footwear are made within the country, they are more expensive because the materials are imported.
Supermarkets reported no considerable change in sales for 2014, though Mega Supermercado Santa Cecilia manager René Barahona revealed that sales during the holiday season were higher in 2013.

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