UPDATE 3-Ecuador's victorious Correa faces economic trials

(For more on Ecuador's election, click on [nN26486483])

* Results give Correa more than 50 percent of vote

* Correa party close to absolute majority in assembly

* Tough economic challenges in volatile country (Recasts with new Correa comments)

By Alonso Soto and Frank Jack Daniel

QUITO, April 27 (Reuters) - President Rafael Correa vowed to radicalize his "revolution" after a re-election victory made him Ecuador's most powerful leader since it adopted democracy, but he must first deal with shrunken oil revenues and a weak economy.

The left-wing Correa won 52 percent of the vote, with a 24 percentage point lead over his nearest rival, former President Lucio Gutierrez, according to official results based on returns from 70 percent of polling stations.

Correa's party was close to securing an absolute majority in the 124-member assembly, exit polls showed, making it easier for him to pass his proposals to limit the power of media companies and increase regulation of banks and the armed forces.

He quickly vowed to steer his OPEC country on a path toward what he calls "21st Century Socialism" [N26472915] after the first re-election in the 30-year-old democracy of Ecuador, where the last three elected presidents were toppled by unrest.

"More than change direction, it's about deepening the changes we already started, radicalizing and accelerating them," he told foreign journalists on Monday.

In a show of exuberance after his win, Correa dismissed concerns about the economy, even though Ecuador's foreign exchange reserves dropped by half over the last six months, unemployment rose and growth slowed as the global financial crisis cut into vital oil revenues.

"I am very optimistic. To start with, 2010 is going to be a great year, and 2009 is going to go very well considering the crisis," he said. "The worst has passed."

Correa, who said Ecuador still faced considerable economic uncertainty, said on Sunday policies such as tough import restrictions had protected the economy and jobs.

He claimed the election as a victory for the generation of left-wing Andean presidents like Venezuela's Hugo Chavez who challenge U.S. policies and influence in Latin America.

"The triumph is, of course, a slap on the back for the 21st century socialist political project at the national and regional levels," said the U.S.-trained economist.

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