GDP in Ecuador

Ecuador GDP | Economic News & Forecasts

Ecuador - GDP

Economy contracts for the first time in three years in Q3

The economy contracted for the first time since Q3 2016 in the third quarter as GDP fell 0.1% on an annual basis, contrasting the revised 0.6% expansion in the second quarter (previously reported: +0.3% year-on-year).

A marked contraction in domestic demand was behind the downturn. Public expenditure shrank at a quicker pace of 2.8% in Q3 after falling 0.3% in Q2 (previously reported: -1.2% yoy) amid government efforts to narrow the fiscal deficit under the IMF-mandated belt-tightening program. Moreover, fixed investment withered 3.0% in Q3, after contracting 2.6% in Q2 (previously reported: -1.8% yoy). Meanwhile, private consumption growth slowed in Q3, moderating to 1.1% from Q2’s 2.3% expansion (previously reported: +0.6% yoy) amid weakening consumer sentiment.

On the external front, export growth lost pace in the third quarter, slowing to 4.1% from a revised 4.9% in Q2 (previously reported: +5.7% yoy). Meanwhile, import growth markedly slowed in the same period, ebbing to 0.3% in Q3 from Q2’s upwardly revised 5.0% expansion (previously reported: +2.2% yoy).

Looking ahead, activity is seen rebounding mildly in 2020 as fixed investment recovers amid improved business sentiment; private consumption picks up slightly on the back of buoyant credit growth; and the fiscal position improves. However, political uncertainty ahead of the 2021 elections, and the risk of social unrest as the government attempts to cut its wage bill, pose key threats to the outlook.

Panelists participating in the LatinFocus Consensus Forecast project the economy to grow 0.5% in 2020, which is down 0.1 percentage points from last month’s projection. For 2021, the panel sees growth coming in at 1.3%.

Ecuador - GDP Data

2014   2015   2016   2017   2018  
Economic Growth (GDP, annual variation in %)3.8  0.1  -1.2  2.4  1.4  

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Ecuador GDP Chart

Ecuador GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Central Bank of Ecuador and FocusEconomics calculations.

Ecuador Facts

Value Change Date
Exchange Rate25,0000.0 %Dec 31

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