Shrimp farmers give growth classes

Ecuadornews:

No sector grew as much as the shrimp fisherman during the third quarter of the year that ended. The next one had an increase in its GDP (Gross Domestic Product) of less than half.

This growth based on basic principles of successful business (research, investment, marketing) could slow down if the rise in fuels has an effect on their costs, as presumed by breeders.

The preliminary report of the Central Bank reflects different dynamics in the sectors, which are reflected in an overall growth of 1.4% of GDP. In nominal terms, it reached 27,267 million in the third quarter of 2018. Economic growth “is mainly explained by the favorable performance of the Gross Value Added (GVA) of the non-oil sector, which registered an increase of 1.8%, while that of the oil sector presented a negative inter-annual variation (-3.2%), associated with a decrease in the level of crude production “.

The private sector is the one that energized the economy, but there are sectors of it that continue to perform marginally, as is the case of agriculture, for which the State does not yet find a formula.

The evolution is determined by the behavior of the Final Consumption Expenditure of Households, which registered an inter-annual growth of 2.6%, while the Government’s was of 2.3%: Gross Formation of Fixed Capital (FBKF) increased by 1 , 6%; exports of goods and services 1.1% and imports 3.9%.

Although families will suffer in 2019 because they must spend more on fuel and less on the purchase of goods, which impacts on the finances of companies and employment.

In the United States, Donald Trump has achieved an opposite effect, and positive: Americans spend less on fuel (because of the price drop) and that saving is used to buy other things.

The FBKF, which registers investment levels, contributed 0.38 percentage points to the year-on-year growth in GDP.

This performance was determined by a greater investment in machinery and equipment, electrical equipment and transportation equipment, which varied by 3.3%, revealed the Central.

The consumption of Ecuadorian households grew 2.6%, and is associated with an increase of 1.3% in the number of operations destined to ordinary consumption credit for the acquisition or commercialization of light vehicles and 14.4% in the operations of priority consumer credit for the purchase of goods and services. 2019 is presented as an enigma to all.

The 5 sectors:

1. Aquaculture

There was an improvement in the technification of shrimp ponds. For this reason, its exports reached 130,400 metric tons, equivalent to a year-on-year increase of 18%.

2. Electricity

There was an increase in water generation by 6.9%. The production line of Coca Codo Sinclair (6.6%) and Hidropaute (10.5%) stands out. Thermal generation fell 4.1%.

3. Teaching

The current expenditure of public education increased 13.8% due to the positive evolution of salaries and the purchase of goods and services. Private education varied by 3.5%.

4. Accommodation

The activity is related to the tourism dynamics. According to the Tourism, the entrance of foreigners to the country had a growth of 52%, happening to 636.817 in the third trimester of 2018.

5. Finance

The rise in the financial inter-annualization is the result of the year-on-year increase of 12.3% in the number of credit operations granted by the financial system to the private sector. (I)

Source: https://www.expreso.ec/economia/camaroneros-clases-crecimiento-economia-ecuador-JF2557209