Ecuador finds itself grappling with a decline in both exports and imports in 2023. The Ecuadorian Federation of Exporters (Fedexpor) sheds light on the factors contributing to this downturn, with a significant impact on the oil, aquaculture, and fishing sectors.

Overall Contraction in Foreign Trade

Total foreign sales from Ecuador witnessed a 5% reduction, amounting to USD 28.53 billion, while imports decreased by 4%, reaching USD 26.88 billion from January to November 2023. This dip in trade is primarily attributed to an 18% reduction in oil exports, a critical component of Ecuador’s international commerce.

Non-Oil Exports Show Resilience

Despite the overall contraction, non-oil exports experienced a 5% increase. Non-oil non-mining exports also saw a modest rise of 2% compared to the previous year. However, since July 2023, these sectors have been contending with a declining growth rate.

Aquaculture and Fishing Sector Challenges

The most significant factor contributing to the overall poor performance is the downturn in the aquaculture and fishing sector, notably impacting the shrimp industry. The average implicit price of shrimp has faced a decline for 15 consecutive months, exerting pressure on the sector’s revenue.

Shrimp Exports

As of November, shrimp exports totaled USD 6.655 billion, reflecting a 2% reduction in income. Intriguingly, this decline occurred despite a 13% increase in the volume of shrimp exported. The lower price level has been a persistent challenge throughout the year, impacting the financial health of the shrimp industry.