Non-oil exports grew 10% in 2020 despite the pandemic

During last year, non-oil exports reached $14,976 million.

Several areas of the export sector managed to avoid part of the attacks of the coronavirus pandemic and allowed 2020 toEcuador registered a 10% growth in its non-oil shipments to the world.

During last year, non-oil exports reached $14,976 million, an amount that theEcuadorian Federation of Exporters (Fedexpor)considers “a historical record.”

Of the ten main exportable products, six registered increases in their value, ranging from 2% to 183%. Among those items with good performance are bananas, cocoa, mining products, wood products, tuna, and canned fruits and vegetables.

Although shrimp, canned fish, flowers and coffee had drops in their currencies in this pandemic year, these were not so drastic, as they were between -1% and -13% in the worst scenario.

The banana export sector closed 2021 with the shipment of 376 million boxes, 2.5% less than 2020Shrimp sales abroad fell in value by 2%, but in volume they grew by 7%. This item generated foreign exchange for $3,824 million, becoming the first non-oil export product followed by bananas with $3,669 million. For banana growers, these shipments represented 11% more in value and 6% in volume.

Felipe Ribadeneira, executive president of Fedexpor,considers that having ventured into non-traditional channels, such as sales platformsonline, as well as acting quickly in the face of challenges and changes in demand, were factors that allowed us to consolidate strong agri-food exports and sustain exports of non-traditional products.

Unlike what happened with non-oil exports, Ecuadorian oil shipments fell by 40%. Oil exports reached $5.25 billion. The sharp reduction in foreign sales is associated with low global demand, low prices and the breakage of the pipeline in April.

This ended up causing the country's total exports to register a drop of 9%.

The banana export sector closed 2021 with the shipment of 376 million boxes, 2.5% less than 2020Imports decreased by 21% compared to 2019. According to Fedexpor, this behavior is mainly based on the year-on-year drop in fuel imports by 36% and capital goods by 23%.

In the end, the trade balance ends with a favorable balance of 3,240 million, resulting from a trade surplus of $2,599 million in the oil balance and a trade surplus of $641 million in the non-oil balance.

Despite the good performance of some areas, 2021 presents challenges.José Antonio Hidalgo, executive director of AEBE,maintains that among those challenges that the sector must face are the increase in costs, excessive fiscal pressure, lack of water in new production areas (Santa Elena), the signing of trade agreements with Asian countries, among others.

The federation that brings together exporters believes that we must not neglect some export sectors that were hit by demand and propose real solutions that allow economic activity to be revived and strengthened. “We need to refocus efforts on the structural reforms necessary to improve competitiveness at a time when we must define the discussion agenda for the coming years…” says Ribadeneira.