In the second quarter of 2023, Ecuadorian economy experienced a positive variation of 3.3% compared to the same period of the previous year. This growth was primarily driven by a 6.4% increase in government spending, a 4.3% rise in household consumption, and a 3.8% growth in Gross Fixed Capital Formation (GFCF).
The increase in government spending was mainly related to the procurement of goods and services, as well as the payment of salaries in the health and education sectors. On the other hand, the growth in household consumption was boosted by rising remittances and consumer credit operations. Additionally, the positive performance of GFCF was reflected in increased purchases of machinery and transportation equipment, as well as growth in the construction sector.
Furthermore, imports recorded a 6.2% increase, driven by the acquisition of machinery, electrical equipment, basic chemicals, and transportation equipment. On the contrary, exports showed a slight year-on-year reduction of 0.2%, attributed to decreased foreign sales of petroleum, processed fish, and metallic and non-metallic minerals.
At the industry level, 15 out of 18 sectors reported positive performance during this period. Among the activities with the highest year-on-year growth rates were:
- Electricity and water supply at 10.8%
- Aquaculture and shrimp fishing at 10.5%
- Education and social and health services at 8.5%
- Postal and communications at 7.5%
- Public administration at 4.3%
In quarterly terms, Ecuadorian economy grew by 2.5% compared to the first quarter of 2023. This result is primarily explained by a 7.6% increase in GFCF, a 3.5% rise in government spending, a 3.3% growth in exports, and a 2.5% increase in household consumption. Imports also grew by 2.1%.
Finally, it is important to mention that the results of the National Accounts for the second quarter of 2023 will be the last period using the fixed base of 2007. Starting from the next release of National Accounts, the results will be presented using a moving base, which will incorporate a broader range of statistical indicators and reflect the country’s most recent economic structure. These results will be published in accordance with the statistical calendar of the Central Bank of Ecuador.
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