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Ecuador grew in imports and exports in 2018
Posted On 26 Feb 2019
Ecuadornews:
In 2018, Ecuador increased its imports and total exports by 16.2% ($ 22,121 million); and 13% ($ 21,606 million) respectively, as explained on Monday by the Minister of Production, Foreign Trade, Investment and Fisheries, Pablo Campana, during the rendering of accounts of that year that took place in the Governorate of Guayas with the presence of the governor Raúl Ledesma.
“This is a record of the country, we have never before achieved this volume of exports, but we do not settle, we want to continue encouraging the export sector to bring foreign currency to Ecuador,” said Campana.
He pointed out that non-oil exports grew by 4.9%, that is to say, equivalent to $ 600 million more than in 2017. He added that the United States continues to be Ecuador’s main trading partner, although he regretted that in 2018, per quarter consecutive year, it showed a -2% decrease in exports, due, explained Campana, due to the lack of competitiveness due to the absence of a trade agreement with that country.
“The reactivation of ICT is very important for us … and we have to reach a commercial agreement,” said the minister.
Meanwhile, industrialized exports such as petroleum products, processed coffee, processed cocoa, fishmeal, chemicals and drugs; hats, textile manufacturing and others; they also presented an increase of 7% ($ 4,638 million).
Meanwhile, he stressed that the current government has not discouraged imports and that 57% of these are raw materials and capital goods for the most part for the national industry. For example, in the case of automobiles, which head the five main imported non-oil products, 22% more came into the country in 2108 than in 2017 ($ 1,067 million).
Previously criticized many imports, in 2018 we decided to encourage imports, not block them because 60% of importacioens are raw materials and capital goods that are not produced in Ecuador, “Pablo Campana, Minister of Production, Foreign Trade , Investments and Fishing
The other products are: industrial machinery, other products of metal medicines and household appliances that together represent 22.3% of total non-oil imports.
Campana stressed that thanks to imports, Ecuador grew 10% in the collection of taxes, going from $ 3,479 million in 2017 to $ 3,830 million in the past year.
October of the 2018 was the month that registered a greater collection with $ 378 million, also in 2018 the Value Added Tax (VAT) was the one that contributed the most with 51%, followed by the Ad Valorem with a participation of 38%.
Commercial balance and direct foreign investment
One of the negative values of the country continues to be the trade balance, acknowledged Campana, who noted that this total item was – $ 515 million, while the non-oil was calculated at – $ 4,958 million, although campaign stressed that in both cases are less than the average of the last 9 years, – $ 651 million and – $ 6,352 million respectively.
While the Foreign Direct Investment (FDI) until the third quarter of 2018, according to the Central Bank of Ecuador (ECB), increased 41% when going from $ 522 million to $ 736 million which translates into the highest IED of the last 5 years, although Campana said he did not feel comfortable with the figure that with the last three months of last year could be between $ 1,050 million and $ 1,100 million, since he indicated that Peru and Colombia receive much higher values, $ 7,000 million and $ 14,000 million respectively.
We have to do much more, we have to take out tenders for the hydrocarbons, energy, mining and infrastructure sectors, we need to capture those investments “, Pablo Campana Minister of Production, Foreign Trade, Investment and Fisheries.
Another item in rise is the total sales of the private sector that grew 4.2% in relation to 2017, with an increase of more than $ 7.498 million. (I)
