Boom in oil refining dampens accounts

The fall in oil imports, as well as the increased oil production and refinement, have been the elements that have contributed in order that the fall of the economy is less strong and even slight recovery has been observed.

This was explained by the manager of the Central Bank (ECB) Diego Martinez when asked about the behavior of the oil economy, which according to figures from the bank recorded a positive 7.4% oil VAB when comparing the second quarter of 2016 versus the same period of 2015.

For Martinez, the operationalization of the Esmeraldas refinery was key in this behavior. The official explained, first, that imports of oil products dropped. Thus, from January to July 2015, 3,940 tons were imported and in the same period of 2016 3,100 tons.

Low imports are explained by the increased production of derivatives. By lowering imports, there is a higher domestic production.

Growth rates for refining have been rising. At the end of 2015 refining grew by 186% (compared to the quarter last year), while for the first quarter of 2016 this increase stood at 155% and for the second quarter it was 84%.

Nevertheless, Martinez acknowledged that the country is going through a recession time, for having presented a fourth consecutive quarter of negative index.

From the third quarter of 2015 to the second quarter of 2016 the following rates have been presented: -0.2% -1% -4% and -2.2%.