[Economics] The Ecuadorian economy grew 3.8% during the first quarter of 2022

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The Ecuadorian economy grew 3.8% during the first quarter of 2022 compared to the same period in 2021, reflecting a recovery of economic and productive activities in Ecuador.

In year-on-year terms, the increase of 3.8% was driven by the positive variation of the components of the Gross Domestic Product (GDP) such as: Household Final Consumption Expenditure of 6.7%; the Final Consumption Expenditure of the Government of 6.5%; and the Gross Fixed Capital Formation (FBKF) of 4.0%.

The behavior of household consumption in the first quarter of 2022 responded to the increase in remittances, imports and consumer loans. This quarter reached a higher level compared to previous years, exceeding pre-pandemic levels. It should be noted that the sustained recovery of household consumption has been a fundamental element in the performance of the economy, since it represents more than 60% of GDP.

Additionally, the growth of the Government's Final Consumption Expenditure was based on the increase in salaries in the public sector and on the purchase of goods and services. On the other hand, the FBKF component was driven by increases in the purchase of machinery, transportation equipment, furniture, and metal products.

At the industry level, 12 of the 18 sectors reported a positive performance. The main activities that reflected higher year-on-year growth were:

Aquaculture and shrimp fishing at 28.5%.
Accommodation and food services at 8.6%.
Electricity and water supply at 8.4%.
Trade at 7.0%.
Transportation at 6.5%.

 

In quarterly terms, the Ecuadorian economy grew 0.4% during the first quarter of 2022 compared to the fourth quarter of 2021, which was characterized as a period of high economic activity. The quarterly growth responded mainly to the 4.1% increase in FBKF, 0.2% in Household Final Consumption Expenditure and 0.1% in Exports.

Finally, it is important to point out that the results of the first quarter of 2022 considering the effects of the geopolitical conflict between Russia and Ukraine, reflecting the reduction of certain non-oil exports.

 

Link: https://www.eltelegrafo.com.ec/noticias/actualidad/44/la-economia-ecuatoriana-crecio-3-8-durante-el-primer-trimestre-de-2022