QUITO -- Local newspaper El Comercio reported that 35% of the government’s 2015 investment budget (equivalent to $3.0 billion or 2.9% of this year’s projected GDP), was used through 22 July.
The government has prioritized investment in hydroelectric projects (from dams to transmission lines), which accounted for over 20% of the total investment, according to El Comercio.
Other sectors that received important investment funds were communications, education, housing, and agriculture.
Analysts expect the execution of public investment projects to continue to be subject to the government’s financing constraints, with the government reducing public investment in order to keep its fiscal deficit sustainable. The investment budget was reduced by around $800 million in January because of the decline in oil prices.