Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ecuador Grows at Fastest Pace in One Year as Oil Output Rises

Nov. 1 (Bloomberg) -- Ecuador’s economy in the second quarter grew at the fastest pace in a year as increased consumer spending and crude output offset slowdowns in construction and retail.

Gross domestic product rose 1.2 percent from the previous quarter, its fastest pace since the second quarter of 2012, the central bank said today in a report on its website. The economy expanded 3.5 percent in the second quarter from a year earlier, unchanged from the prior three months.

Ecuador, an OPEC nation that relies on oil exports for about a third of its budgeted revenue, boosted crude output as investments in new technology at so-called mature oil wells came online, the bank said. The increase helped the government finance public spending and drive economic growth, said Francisco Briones, an analyst at the Guayaquil-based economic and political research company Inteligencia Estrategica.

Oil revenues “directly affect growth by affecting government revenue and hence government spending,” Briones, who forecast an expansion of 3.5 percent in the second quarter from the prior year, said in an e-mailed response to questions before the data was released. “A large part of public spending is channeled to road construction, infrastructure and mortgage lending.”

To contact the reporter on this story: Nathan Gill in Quito at ngill4@bloomberg.net

To contact the editor responsible for this story: Andre Soliani at asoliani@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.