Ecuador 2008 Inflation Seen Above 5% - Fin Min

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QUITO -(Dow Jones)- Ecuadorean Finance Minister Fausto Ortiz Tuesday raised
his 2008 inflation forecast to above  5% from a previous 3.7%.


  "The inflation around the world forces us to review our inflation goal," Ortiz
said at a press conference.


  Ecuador's consumer price index rose 6.56% over the 12-month period through
March and the accumulated CPI growth between January and March was 3.61%.


  Food prices in Ecuador rose sharply in the first months of this year as the
worst floods the Andean nation had seen in decades disrupted the supply of food.


  Ortiz also said the government plans to sell $700 million in domestic debt by
the fourth quarter to ensure the government has enough cash next year.


  Ortiz said the Andean country's gross domestic product is likely to expand by
more than 4% in 2008.


  Public spending and oil output will be main drivers of Ecuador's economy in
2008, Ortiz said.


  In 2008, the government plans to spend about $4.86 billion for hydroelectric
and oil projects, as well as for improving roads.


  The country's oil output will rise 8% in 2008 from the previous year, Ortiz
said without elaborating.



  -By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@
dowjones.com