The head of fiscal resources said the impact of a strong economic expansion in 2021 is now being experienced, saying “the previous administration has increased spending but failed to stop pension withdrawals.”
Minister of Finance, Mario Marcel again acknowledging some grim economic forecasts for the country, a The final quarter of 2022 will be difficult, with unemployment likely to rise.
Officials were interviewed on the program Estado Nacional de. TVNhe said the economy is experiencing adjustment period After the complex social epidemic of 2020 and the complete COVID-19 crisis, and Exceptional growth in 2021 takes into account the low comparatives and the committed resources.
“Throughout this year there has been an adjustment in economic activity, especially demand. Already in months we have had negative numbers. (…) A process that will continue more or less until the end of the year,” he commented.
To explain the situation, he said we are currently experiencing “aftershocks” of the earthquake. “There was an earthquake in 2020-2021.”
Marcel also repeated that We could face a recession He called for calm, stressing the need for “adjustments” to curb inflation.
He also warned that unemployment is likely to rise as a result. “But whatever we see in the labor market and activity, we need to make it clear that it is temporary.” he argued.
Finally, he admitted that the final quarter will be “difficult”, A recession would be “just what it needed because it started so high.”
“Unfortunately, 2021 saw a very strong expansion. The previous government increased spending but was unable to stop pension withdrawals, committing 35% of GDP to the budget. This is a huge amount for the world economy. ” was sentenced.