Services, manufacturing, construction and commerce expanded, while petroleum and agriculture moved in the opposite direction.

Ecuador’s economy grew 2% during the first half of 2026 compared with the same period a year earlier, according to new Banco Central del Ecuador data.

The result points to continued expansion, but the details are mixed. Services, manufacturing, construction and commerce were the main contributors, while petroleum and agriculture weakened.

Where the growth is coming from

Services expanded 2.6% over the first six months, manufacturing 3.8%, construction 3.4% and commerce 2.1%. Those sectors matter directly to Cuenca because the city’s economy is far more closely tied to services, trade, construction, manufacturing and tourism than to crude-oil production.

The Central Bank’s monthly activity indicator also showed the economy growing 2.2% in June compared with June 2025. Services made the largest contribution to that monthly increase. Greater electricity generation and increased lending by the financial system contributed to the improvement.

The Central Bank linked part of the services improvement to greater electricity generation and increased lending by the financial system, including productive credit, consumer loans, microcredit and real-estate financing.

Credit conditions help explain why the services number matters. More lending can support purchases of homes, vehicles and durable goods and can provide working capital for businesses. At the same time, stronger lending is not automatically positive if households or companies take on obligations they cannot comfortably service.

Commerce grew 4% year over year in June, helped by stronger sales of vehicles and fuels. Manufacturing increased 4.2% and construction 3.9% for the month.

The weaker side of the economy

The weaker side of the picture came from oil and agriculture. Petroleum and mining activity contracted 3.4% in June, reflecting lower crude production and reduced mining export volumes. Agriculture, livestock, forestry and fishing declined 1.5%.

The sector differences also matter geographically. Oil weakness is felt most directly in producing regions and in national government revenue, while construction, commerce and manufacturing are more visible in cities such as Cuenca. A national average can therefore mask very different local experiences.

They also do not eliminate other concerns facing Ecuador, including fiscal pressure, public debt, security costs and the risk that weather conditions could affect agriculture and infrastructure later in the year.

Government finances will remain part of the second-half picture. Stronger private activity can support tax collections, but Ecuador still has spending and financing pressures that are not resolved simply because gross economic activity is growing.

What the numbers mean for Cuenca

For residents trying to interpret what “2% growth” means, it is important not to confuse national output with household prosperity. Economic-growth measures do not show that every family’s income has risen 2%, nor do they say how gains are distributed across regions or income groups.

Another reason to treat the 2% figure cautiously is that Ecuador is comparing 2026 with a specific period in 2025. Growth rates describe the change from that base; they do not by themselves tell readers whether output has returned to a longer-term trend or whether particular households have recovered purchasing power.

For Cuenca, the encouraging part of the report is the combination of construction, commerce and manufacturing growth. Those sectors have broad local supply chains, from professional services and transport to building materials, retail employment and small suppliers, so continued expansion can spread beyond the companies directly counted in each category.

The most useful reading is therefore neither “the economy is booming” nor “the numbers do not matter.” A 2% first-half expansion is moderate growth. It shows resilience in several private-sector activities, while the contraction in oil and agriculture demonstrates that the recovery is uneven.

The second half will be a tougher test. Electricity reliability, weather, international trade conditions and government finances could all influence whether the pace holds through the end of 2026.