Moody's Vice President - Senior Analyst Jaime Reusche affirmed that granting legislative powers to the Executive is a quite positive development for the economy and competitiveness of the country in the medium term.
He also said the grant's contribution to growth is projected to be slightly less than 2 percentage points of gross domestic product.
“Its exact impact on growth rates is uncertain and, due to the fact that some sections of the original proposal were denied, it seems unlikely that the contribution to growth will be two percentage point of GDP, but slightly less than MEF’s original estimate,” he told Andina news agency.
However, he continued, we highlight the institutional maturity of different political forces in the Congress, which decided to grant powers contained in other key sections.
He continued, “... especially in works for taxes and public-private partnerships, which have bent over backwards to strengthen the economy and set aside political interests that could damage economic expectations even more.”
The economist said the key development initiatives to be observed over the next 90 days involve the Executive’s ability to legislate regulations that would foster the economy and the reaction of the business community and private sector concerning the revival of investment spending.
The most immediate effect might be seen in the construction sector, which remains affecting the economic activity.
(END) JJN/JJN/RMB
Published: 6/20/2015