Ecuador: GDP expands at slowest pace in five years
July 2, 2015
In Q1 2015, GDP grew 3.0% over the same quarter of the previous year, which came in below the 3.5% increase registered in Q4 and represented the slowest pace of growth since Q2 2010.
Q1’s slowdown mainly reflected a deterioration in domestic demand. Total consumption growth fell from Q4’s 4.6% to 4.2% in Q1. Private consumption growth fell from 4.3% to 3.4%, while growth in government spending accelerated from Q4’s 6.1% to 7.9% in Q1. Fixed investment growth displayed a drastic decrease, swinging from a solid 4.0% growth in Q4 to a 0.8% contraction in Q1.
Exports of goods and services increased in Q1, rising from a 3.8% increase in Q4 to a 4.9% rise. Imports fell from Q4’s 7.0% increase to a 4.2% expansion in Q1. As a result, the external sector’s net contribution to overall growth rebounded from minus 1.1 percentage points in Q4 to 0.1 percentage points in Q1, the highest reading in three quarters.
In seasonally-adjusted terms, the economy contracted 0.5% over the previous quarter, contrasting Q4’s 0.5% increase.
Author: Robert Hill, Economist