Ecuador Sees Poverty Rate Drop to Lowest Level Since 2018 as Economic Growth Accelerates

Ecuador has made significant progress in reducing poverty over the past year, with approximately 220,000 people rising out of poverty according to recent government figures.

The national poverty rate dropped to 24% in June 2025, down from 25.5% in June 2024—a decline of 1.5 percentage points and the lowest rate recorded since December 2018.

These figures were released by Ecuador’s National Institute of Statistics and Census (INEC) and announced at a press conference by government spokesperson Carolina Jaramillo.

Jaramillo emphasized that this progress reflects the government’s continued commitment to supporting the most vulnerable citizens.

She noted that the reduction in poverty is tied to a range of public policies including targeted cash transfers, compensation programs, and expanded access to credit for productive activities.

Ecuador’s economic growth has been a key factor in this improvement. In the first quarter of 2025, the country’s economy expanded by 3.4% compared to the same period the previous year, reversing a 2% contraction reported in 2024, according to the Central Bank.

This rebound has been driven largely by a robust 7.1% increase in household consumption, reflecting greater spending power among Ecuadorians.

Additionally, non-oil exports rose by 2.7% and fixed capital investment saw a 6.7% jump, fueled by increased purchases of agricultural and industrial equipment.

The government sees the latest poverty figures not as an end point but as a sign of progress toward broader economic and social transformation in Ecuador.

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