Ecuadorian economy grew 1.2% in the first quarter of 2024; learn the reasons – 2024-07-21 18:19:52

2024-07-21 18:19:52

In the first quarter of 2024, Ecuador’s economy grew 1.2% compared to the same period in 2023, driven by a reduction in imports and an increase in inventories, although several key components decreased.

In the first quarter of 2024, Ecuador’s Gross Domestic Product (GDP) showed a growth of 1.2% compared to the same period of the previous year. According to data published by the Central Bank of Ecuador, on the night of June 28, 2024.

This performance was mainly due to the reduction of imports Inventories have already increased by 3.3% due to a lack of sales. However, the main components of the Ecuadorian economy have declined compared to the same period last year.

He government spending decreased by 0.3%, exports fell by 0.5%, household consumption fell by 1.1% and gross fixed capital formation or State investments decreased by 1.3%.

The reduction in imports was driven by aless demand for products refined petroleum products, vehicles and transport equipment. On the other hand, the decrease in household consumption was due to a drop in demand for trade and transport services.

The contraction in government spending was based on a reduction in administrative services, while the drop in exports was mainly influenced by lower sales of processed shrimp abroad.

The change in inventories had a positive effect on the economy due to a high accumulation of inventories by companies, in response to contractions in domestic and external demand.

Half of industries grew

At the industry level, only 10 of the 20 sectors showed positive performance, i.e. growth. The highlighted sectors include:

1. Electricity and water supply: 12.5%
2. Fishing and aquaculture: 10.8%
3. Mining and quarrying: 4.3%
4. Technical professional activities: 3.9%
5. Real estate activities: 2.9%

On a quarterly and seasonally adjusted basis, GDP grew by 3.5% compared to the fourth quarter of 2023. This growth was driven by the recovery of exports by 10.6%, investment by 3.1% and household consumption by 2.0%.

Las Imports decreased by 10.2%contributing positively to the performance of the Ecuadorian economy. Government spending decreased by 0.3% and there was a slowdown in the accumulation of inventories compared to the previous quarter, which had a negative impact on GDP.

By: EL COMERCIO