This South American country is going through its worst economic contraction since 1927.
The Central Bank of Ecuador (BCE) forecasts that up to 550,000 jobs will be lost in 2020. This will happen because the Gross Domestic Product (GDP) could easily decrease between 7.3 and 9.6 percent.
“It is the worst economic contraction on record since we began keeping macroeconomic statistics in 1927,” the BCE Manager Veronica Artola acknowledged.
Previously, international organizations estimated that the Ecuadorean GDP could decrease between 6.3 and 7.4 per cent. Some recent corrections to the quarterly macroeconomic accounts, however, suggest that the drop could be as high as 10 per cent.
From March to May, during the pandemic’s first three months, Ecuador lost US$6.2 billion, of which US$5.2 billion were private-sector losses. That amount, which is equivalent to 3.8 per cent of the 2019 GDP, confirms the scenario for 2020, as Artola explained.