In the third quarter of 2024, Ecuador’s Gross Domestic Product (GDP) contracted by 1.5% compared to the same period in 2023. This performance was related to year-on-year contractions in expenditure components: gross fixed capital formation (GFCF) by -6.2%, exports by -5.1%, and government spending by -1.04%. In contrast, household consumption grew by 2.9% and imports by 0.3%.
The reduction in GFCF is explained by the year-on-year decline in the construction sector and the reduction in sales of inputs for this sector. Exports, for their part, contracted mainly due to the reduction in external sales of crude oil, petroleum derivatives, shrimp, mining products, among others. Furthermore, the reduction in government spending was primarily associated with a decrease in the purchases of goods and services in the State’s General Budget.
On the other hand, household consumption grew primarily due to increased demand for manufactured food products [1], arts and entertainment services, real estate, and accommodation and food services. Finally, imports grew slightly due to increased demand for raw materials and intermediate products, and capital goods for industry and agriculture.
At the industry level, six of the 20 sectors posted positive performance, including:
- Arts, entertainment, and other activities (3.7%);
- Fishing and aquaculture (3.2%);
- Accommodation and food services (2.6%);
- Real estate activities (1.5%);
- Agriculture, livestock, and forestry (0.8%);
- Food manufacturing (0.1%);
Compared to the previous quarter, GDP contracted by 0.2%. This result is explained by the decrease in exports by -1.5%, in household consumption by -0.9%, and in government spending by -0.3%. In contrast, the GFCF grew by 2.1%, and imports [2] decreased by -2.3%.
The Central Bank of Ecuador (BCE), in compliance with its policy of reviewing and disseminating the National Accounts, has implemented important methodological improvements and carried out revisions of the historical series since 2018, after successfully concluding technical assistance with the Statistics Department of the International Monetary Fund (IMF) in December 2024. These actions reflect the BCE’s commitment to implementing international standards, which guarantees that the statistical information published is accurate, reliable, and representative of the country’s economic reality.
This publication includes the final versions of the Annual National Accounts (ANC) for 2021 and 2022, as well as the provisional version for 2023, within the results of the Quarterly National Accounts (CNT).
More information can be found at the following links:
[1] The main manufactured food products in demand were: oils, dairy products, sugar, and confectionery products.
[2] Imports contribute in the opposite direction to GDP growth.
