Analysis by Region - Emerging Markets - Ecuador

Analysis by Region - Emerging Markets - Ecuador

We have cut our 2023 GDP growth forecast for Ecuador by 0.5ppts to 1.9% y/y. An earthquake, flooding, and social unrest surrounding oil fields resulted in a disastrous Q1 GDP result. Additionally, private consumption contracted by 1.9% q/q due to restrictive interest rates and a deteriorating outlook. We expect domestic demand will remain weak this year.