When it seems the world was recovering of the United States crisis, Greece suffers a new economic and social catastrophe. And because of theglobalization this first great European Union crisis cuts across countries around the world, and Ecuador is not the exception.
I think especially for Ecuador this situation could have negative effectslike: Expensive Ecuadorian products in the European market, the return of migrants, increase rates of debt securities.
Below I am going to explain the three effects that we could have in Ecuadorbecause of the Greek crisis.
1. Expensive Ecuadorian products in the European market
As an effect of this crisis, the dollar / euro fell to 1.31 which kept the trend of appreciation of the dollarsince December last year (was 1.50 in that month). If the dollar appreciates the effects for Ecuador would be that the devaluation of the euro will expensive Ecuadorian exportations and our products willbe more expensive in the European market. For example “A kilogram of bananas, buy two euros and that amounts to USD 3. If the euro depreciates, exporters receive USD 2.50. In other words, we receivefewer dollars when they pay the same amount of euros, as the dollar strengthens.” That means we lose competitiveness. And by the other hand when a product is expensive in a recession it replaced by acheaper one, which could generate some of our products are no longer imported by Europe or that thhey establish barriers to imports.
2. Return of migrants
Another effect that might be inEcuador is the return of migrants that losing their jobs in the most affected countries besides Greece such as Spain and Portugal. This would affect the revenues from remittances that represent the secondmost important economic contribution after oil revenues and that have allowed the circulation of money in the country, since according to Central Bank data migrants provide approximately 1.4 billion...