Mountains in Ecuador

Ecuador Government Consumption

Ecuador Government Consumption

Government Consumption in Ecuador

The economy of Ecuador recorded an average growth rate of 2.1% in the decade to 2022. In 2022, government consumption growth was 4.5%.

Ecuador Government Consumption Chart

Note: This chart displays Government Consumption (ann. var. %) for Ecuador from 2014 to 2023.
Source: Central Bank of Ecuador.

Ecuador Government Consumption Data

2018 2019 2020 2021 2022
Government Consumption (ann. var. %) 3.9 -2.8 -4.0 0.0 1.8

GDP records fastest upturn since Q2 2023 in the first quarter

GDP expanded 1.2% on an annual basis in the first quarter, contrasting the 0.7% contraction logged in the fourth quarter of last year and marking the best result since Q2 2023. That said, this was only due to imports swinging into contraction. Underlying activity was downbeat, as private consumption, government consumption, investment and exports all shrank.

Household spending fell at a more pronounced rate of 1.1% year on year in Q1 following a 0.5% contraction in Q4, as spending on retail and transport fell amid the crime wave and national state of emergency declared by the president in January. Public spending, meanwhile, dropped 0.3% (Q4 2023: +1.0% yoy) on lower government employment. Fixed investment fell at a softer pace of 1.3% in Q1, following the 5.2% contraction logged in the prior quarter. Exports of goods and services fell 0.5% on an annual basis in the first quarter, which was above the fourth quarter's 7.4% contraction, driven by lower shrimp exports. Conversely, imports of goods and services deteriorated, contracting 3.3% in Q1 (Q4 2023: +16.2% s.a. qoq).

On the outlook, Oxford Economics’ Mauricio Monge said: “We've adjusted our forecasts for Ecuador's GDP growth by lowering the 2024 projection by 0.1ppt to 0.9% and raising the estimate for 2025 by 0.4ppts to 1.4%. […] The local VAT rate increase and prolonged high interest rates in the US will limit household spending and investment. Additionally, the oil ban in Yasuní Park from Q4 2024 onward will affect oil exports.” 

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Ecuadorian government consumption projections for the next ten years from a panel of 8 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Ecuadorian government consumption.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Ecuadorian government consumption projections.

Want to get access to the full dataset of Ecuadorian government consumption forecasts? Send an email to info@focus-economics.com.

Latest Global GDP News

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest