The Central Bank of Ecuador reported that the economy remained in an expansionary phase for three consecutive quarters, from the fourth quarter of 2025 through the second quarter of 2026. Its leading indicators point to this expansion continuing in the third quarter of 2026. The coincident composite indicator confirmed that the expansion that began in late 2025 was supported by higher value added tax revenue, stronger sales in commerce, manufacturing and construction, increased lending activity in the national financial system and public sector oil revenue. The leading composite indicator was supported by imports of industrial raw materials and intermediate goods, West Texas Intermediate oil prices, domestic production of petroleum derivatives, savings deposits and improved non-oil terms of trade. Both measures form part of a composite indicator system designed for Ecuador’s dollarized economy and complement gross domestic product data in identifying economic cycle phases and turning points.