According to the Central Bank of Ecuador, Ecuador’s economy experienced a 0.7% growth in the first quarter of 2023 compared to the same period last year.
The growth was primarily driven by a 1.6% increase in household consumption, attributed to higher consumer credit operations, increased remittances, and improved employment figures.
Exports also played a role in the economy’s growth, with a 0.4% increase, mainly driven by the export of shrimp, bananas, coffee, cocoa, and flowers.
Government spending also contributed positively, showing a growth of 0.5%.
However, the investment component, gross fixed capital formation (GFCF), declined by 5.2%, and imports decreased by 1.3%.
The report highlights that among the 18 sectors analyzed, 12 sectors showed positive performance.
Industries such as Petroleum Refining, Aquaculture and Shrimp Fishing, Post and Communications, Accommodation and Food Services, and Agriculture exhibited the highest year-on-year growth.
The report also attributes the results of the first quarter to a decrease in national oil production.
This decline was due to two force majeure declarations by the public company Petroecuador.
The first declaration was a result of a bridge collapse in the province of Napo, which affected oil infrastructure.
The second declaration stemmed from conflicts with communities near oil fields in the Amazon, where a significant portion of the oil industry is situated.