In the second quarter of 2024, Ecuador’s Gross Domestic Product (GDP) recorded a 2.2% decrease compared to the same period in 2023[1]. This performance was related to year-on-year contractions in gross fixed capital formation (GFCF) by 8.2%, household consumption by 2.2%, and government spending by 0.6%. On the other hand, there were positive annual variations in exports by 1.9% and imports by 0.2%.
The reduction in GFCF was due to a contraction in the construction sector by 17.2%, which constitutes about 44% of this component. This component was also affected by a decrease in demand for capital goods such as machinery and transportation equipment. Additionally, household consumption contracted due to lower demand for textile and footwear products, as well as a decline in services related to trade, transportation, accommodation, and food services. The reduction in government spending was mainly related to a decrease in the purchase of goods and services.
Regarding the external sector, the strong year-on-year performance of exports was driven by higher sales of crude oil, processed shrimp[2], cacao, fish and canned tuna, as well as metallic minerals such as copper and lead concentrates. On the import side, the 0.2% growth was primarily explained by an increase in the demand for refined petroleum products.
At the industry level, five out of 20 sectors showed positive performance, including:
- Professional technical activities by 8.5%.
- Fishing and aquaculture by 5.5%.
- Mining and quarrying by 1.8%.
- Manufacture of food products by 1.1%.
- Real estate activities by 0.8%.[3]
Compared to the previous quarter, GDP contracted by 1.9%. This result is explained by a 6.4% growth in imports, which negatively impacted the GDP outcome. GFCF contracted by 0.6%, exports decreased by 0.3%, and household consumption fell by 0.05%. On the other hand, government spending increased by 0.03%.
Finally, the Central Bank of Ecuador (BCE) announces the successful completion of technical assistance provided by the International Monetary Fund (IMF) between July and September of this year which helped strengthen the indicators and calculation methodology for the demand components of the Quarterly National Accounts (QNA). By December 2024, the final versions of the Annual National Accounts (ANA) for 2021 and 2022 will be published. In addition, the Annual and Quarterly National Accounts for 2023 will be updated from preliminary to provisional versions. These publications will incorporate statistical innovations developed during the technical assistance with the IMF.
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[1] All figures presented in this report are in terms of chained volumes adjusted for seasonal effects with 2018 as the reference year.
[2] This product corresponds to the sector of food products manufacturing.
[3] The real estate activities industry includes the buying and selling and renting of real estate services. This industry does not include the construction sector.
