The economist, who is part of the economic team of the presidential candidate for the Colorado Party (PC), Gabriel Gurméndezindicated last Friday to radio Sarandí that although the current government administration “made some reforms”, we must take the step in “others that are long-term” and in others that are “short-term” that “unleash the forces of creativity” and “the forces of innovation and entrepreneurship rapidly.
Along these lines, he explained that the latter is “key to achieving growth” and recalled that the MEF Fiscal Advisory Council ensures that the potential growth rate is 2.8% annually, while the Uruguay “it is growing at 1.1% for the last 10 or 11 years on average.”
“There is more than double the space to be able to at least get (to work) on that,” Alfie said. “When we do the calculations forward and say what can and cannot be done, we are taking that potential growth” on average, he pointed out.
“The pandemic complicated things a lot, two years were lost”
On the other hand, the Colorado economist commented that, as a result of the pandemicthe country “lost two years” in terms of economic development, so we should not demand from the current government “things that are impossible to fulfill.”
Likewise, he said that if 10% of public sector expenses were saved, excluding companies and salaries and liabilities, about 450 million dollars could be released.
“That generates resources,” he emphasized before adding: “To the extent that these additional resources do not increase these expenses, it leaves you enough room to reduce the fiscal deficit.”
“We are going to go to a process to eliminate the Monetary Regulation Bills”
In turn, the former leader of the Executive power He pointed out that along with former president of the Central Bank of Uruguay (BCU), Julio de Brunalso part of Gurméndez’s economic team, devised a plan to “go to a process to eliminate the Monetary Regulation Bills (LRM)“.
“(The LRMs) have a weight in the fiscal deficit and they greatly impact short-term competitiveness,” Alfie asserted, adding: “This debt must be passed on gradually to the central government.”
“We exchanged a bond for the LRMs, in part, we liquidated this,” Alfie said, to “put them in the long term” and get out of the “short-term quagmire of renewals.” “This allows for a freer monetary policy and will avoid the impacts of a policy on the exchange rate“, he concluded in this regard.
Source: Ambito
