Ecuador Administration anaylzes possible impacts from economic crisis

By Mercedes Alvaro, Of DOW JONES NEWSWIRES

QUITO -(Dow Jones)- Ecuador's Minister Coordinator of Economic Policy said Tuesday that the Andean country is evaluating the possible economic impact from any global economic crisis, after a cut in the U.S. credit rating.
Katiuska King said the effects of the crisis could be seen in a decline in demand for various products. The minister said it is important to improve market diversification, something that the administration of President Rafael Correa has been promoting.
In 2006 industrialized economies such as the United States and Europe contributed 51% to the growth of world demand, while in 2010 that contribution was reduced to 25% and the contribution of emerging-market countries increased to 75% from 49%, the minister said.
King added that anti-cyclical economic policies applied by the country to confront the international crisis have revived the economy.
Ecuador's gross domestic product rose 8.62% in the first quarter of 2011, compared with the prior-year quarter, led by public investment and the oil sector.
It was the country's best quarterly GDP performance since 2008.
Correa recently forecast that GDP is poised to grow 4.2% next year, lower than the 5.24% estimated for 2011.
For 2012 the Correa administration sees 5.18% growth in the non-oil sector and a 2.38% decline in the oil industry, due to a planned temporary shut down of the fluid catalytic converter and other units of the Esmeraldas refinery, the largest in the country.
-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@ dowjones.com