Consumption in Ecuador

Ecuador - Consumption
GDP growth accelerates in Q3
GDP growth picked up to 3.2% year on year in the third quarter from 1.9% in the second quarter. Stronger government spending and a rebound in exports growth spearheaded the expansion, which was also supported by robust private consumption growth.
Domestically, government spending edged up to a 2.0% increase in Q3 (Q2: +1.8% yoy), reflecting wage growth in the public sector, and increased investment in healthcare and education. In contrast, private consumption growth—amounting to 65% of GDP—fell to 3.8% in Q3 (Q2: +4.8% yoy). Household spending was underpinned by strong credit growth and remittances inflows. Fixed investment growth also moderated to 1.0% in Q3, marking the worst reading since Q1 2021 (Q2: +2.5% yoy).
On the external front, exports of goods and services rebounded and grew 0.1% in Q3 (Q2: -0.8% yoy). Improving oil production during the quarter likely drove the expansion. Conversely, imports of goods and services deteriorated, contracting 0.4% in Q3 (Q2: +8.6% yoy).
Additionally, underlying momentum strengthened: On a seasonally adjusted quarter-on-quarter basis, economic growth accelerated to 1.7% in Q3, following the previous quarter's 0.1% increase.
In the fourth quarter, the economy likely continued to grow at a healthy pace but slowed, following the robust performance in July through September; the circumstances driving Q3’s growth largely remained stable in Q4. This will likely push annual GDP growth in 2022 above the Central Bank’s previous projection of 2.7%, according to the latest official estimates.
In Q1 2023, weaker remittances amid a deteriorating global outlook and tighter financial conditions will likely be stifling household spending growth. In addition, the one-year moratorium imposed in September 2022 on the extractive sectors will cap investment growth. Nevertheless, robust fiscal stimulus and a freshly approved USD 700 million disbursement from the IMF should prevent a steeper fall in GDP growth in 2023.
FocusEconomics panelists project GDP to expand 2.2% in 2023, which is up 0.1 percentage points from last month’s forecast. In 2024, the panel sees GDP growth at 2.2%.
Ecuador - Consumption Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Consumption (annual variation in %) | 0.3 | -2.0 | 3.6 | 2.4 | 0.7 |
Ecuador Consumption Chart

Source: Central Bank of Ecuador and FocusEconomics calculations.
Ecuador Facts
Value | Change | Date | |
---|---|---|---|
Exchange Rate | 25,000 | 0.0 % | Dec 31 |
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Economic News
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Ecuador: Economic activity growth rises in November
January 16, 2023
Economic activity increased 4.0% compared to the same month of the previous year in November, which was above October's 1.2% increase.
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Ecuador: Inflation rises in December
January 9, 2023
Inflation came in at 3.7% in December, up from November’s 3.6%.
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Ecuador: GDP growth accelerates in Q3
January 2, 2023
GDP growth picked up to 3.2% year on year in the third quarter from 1.9% in the second quarter.
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Ecuador: Economic activity records lowest expansion since February 2021 in October
December 16, 2022
Economic activity rose 1.2% compared to the same month of the previous year in October, which was a deterioration from September's 4.9% increase.
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Ecuador: Inflation falls to lowest level since May in November
December 9, 2022
Inflation dropped to 3.6% in November below October’s 4.0%.