Ecuador in Figures: Foreign Investment and Economic Challenges
The Ecuadorian economy has navigated through a challenging voyage in 2023. In a recent analysis by the Central Bank of Ecuador (BCE, from the Spanish), findings unveiled that between January and September of 2023, the country only attracted USD 266 million in foreign direct investment (FDI), a figure that casts a shadow, prompting concern and introspection.
The third quarter of the year illuminated a subtle enhancement, with Ecuador attracting USD 155 million in foreign direct investment (FDI), an increase of 124% compared to the same period last year. However, this figure is not enough to offset the significant drop in the annual accumulated figure. Compared to the first three quarters of 2022, in 2023, FDI has decreased by USD 614.5 million, marking a 230% decline.
Mining remains the most attractive sector for foreign investors, followed by communal, social, and personal services, and trade. Canada tops the list of countries investing in Ecuador, followed by Chile, the United States and China.
The Ecuadorian economy has not only been impacted by global market fluctuations, but also by internal challenges. Political uncertainty, marked by ‘cross-death’ and early general elections, along with premature government change, has fostered an atmosphere of instability. Furthermore, increasing security challenges have further complicated the situation, deterring potential investors, according to experts in the field.
