Ecuador: Economic activity plunges at fastest pace since 2006
September 8, 2016
In July, economic activity plummeted and recorded the largest contraction in over ten years. According to the monthly indicator for economic activity (IDEAC, Índice de Actividad Económica Coyuntural), economic activity decreased 18.8% over the same month last year, which was well below June’s notably softer 2.2% contraction. The reading further signaled that economic weakness continues to plague the country amid the devastating impact of April’s earthquake and faltering volumes of exports caused by a strong U.S. dollar.
On a month-on-month basis, economic activity in July decreased 0.44% in seasonally-adjusted terms, which was up from the revised 0.61% fall recorded in June (previously reported: +0.50% month-on-month). The annual average variation in economic activity tumbled from minus 5.0% in June to minus 6.3% in July, the lowest reading on record.
Author: David Ampudia, Economist