The Central Bank of Ecuador (BCE) presented the results of the Quarterly National Accounts for the third quarter of 2023, which, for the first time, incorporate the new chain linking methodology, using 2018 as the reference year.
With this methodological innovation, the BCE contributes to the continuous improvement in statistical production, in order to provide the country with updated figures that more accurately reflect the productive structure and economic evolution of the Ecuadorian economy. The figures are published both at the level of their original series [1]and their corrected seasonal variation series[2], with the aim that users have various elements to carry out their analyzes from different perspectives, guaranteeing the coherence, consistency and reliability of short-term available economic statistics.
For the third quarter of 2023, the Ecuadorian economy recorded a growth of 0.4% compared to the same quarter in 2022. This performance was driven by a 7.3% increase in exports and a 5.1% increase in government spending. The dynamics of exports were influenced by a rise in external sales of oil and natural gas, cocoa, and metallic and non-metallic minerals. Meanwhile, the increase in government spending was directly related to higher purchases of goods and services and the payment of wages in the education and health sectors.
On the other hand, household consumption presented a negative year-on-year variation of 4.7%, due to a decrease in demand for products such as vehicles, textiles, clothing, and dairy products. Similarly, gross fixed capital formation (GFCF) showed a decrease of 5.6%, related to a reduction in the construction sector and lower demand for capital goods in agriculture and transportation equipment. Finally, imports experienced a year-on-year decrease of 14.1%, which is explained by a drop in external purchases of raw materials and intermediate products for industry and agriculture.
At the industry level, only 9 out of 20 sectors reported positive year-on-year performance during the third quarter of 2023. Among the activities that showed the highest year-on-year growth are:
- Exploitation of mines and quarries by 18.8%
- Supply of electricity and water by 11.3%
- Agriculture, livestock, and forestry at 10.2%
- Public administration at 2.7%
In quarterly terms, the Ecuadorian economy contracted by 1.3% compared to the previous quarter. This result is mainly explained by a 3.2% reduction in household consumption and an 8.7% decrease in gross fixed capital formation. In relation to the external sector, exports and imports reported growth of 3.4% and 3.2%, respectively
For more information, please refer to the following link:
