Ecuador sees economy growing 5.06 pct in 2011

[Judi Lynn]

Ecuador sees economy growing 5.06 pct in 2011
Sat Oct 30, 2010 7:32pm EDT

QUITO, Oct 30 (Reuters) - Ecuador's government expects economic growth of 5.06 percent next year and for the South American oil producer to see average inflation of 3.69 percent, Finance Minister Patricio Rivera said on Saturday.

Rivera told reporters his 2011 budget forecast spending of $23.95 billion -- 12.4 percent higher than this year's estimated figure -- and that the government expected an average oil price of $73.30 per barrel next year.

"The program provides funding for absolutely everything. Everything is funded," Rivera said.

He said President Rafael Correa's administration would invest $3.5 billion in the oil sector during 2011. It forecasts total crude production of 181 million barrels and plans to export 126 million barrels, he said.

More:
http://www.reuters.com/article/idUSN3028474020101030?rpc=401

[social_critic]

1. A tad optimistic

Based on more reliable sources, economic growth in Ecuador will be 2.2 % this year, and 2.8 % in 2011. Inflation is running at around 6 % per year, and there´s no reason to expect less inflation next year. Oil production has been lower this year versus last year, due to the uncertainty caused by the government´s move to change the oil contracts, and the inefficiency of the nationalized oil sector.