Ecuador: Economic activity records lowest expansion since February 2021 in March
Economic activity declined 0.9% year on year in April (March: +0.5% yoy). April’s figure marked the worst reading since February 2021.
Meanwhile, the trend pointed down, with the annual average growth of economic activity coming in at 3.5%, down from February’s 4.4% reading.
Analysts at the EIU commented on the outlook:
“Ecuador’s recovery from the pandemic has been slow by regional standards; the economy will only return to its pre-pandemic level this year. There will be tailwinds from high global oil prices, but other developments will be less helpful and will cause GDP growth to slow this year. Private consumption growth will weaken amid an anemic labor market recovery. Meanwhile, rising domestic interest rates will cause businesses to halt investment plans. […] The biggest downside risks to our GDP forecasts are domestic political instability and a deteriorating global economic outlook, particularly in 2023, if major economies struggle more than we expect or if oil prices were to plummet.”