[Economics] Pablo Arosemena proposes an economic reactivation plan with a social approach in Ecuador

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The Minister of Finance reiterated that the economy in the rural sector will be reactivated

Minister Pablo Arosemena announced the Reactivation Economic Plan.

 

The Minister of Economy and Finance, Pablo Arosemena, announced this Monday that in his administration he will promote the Economic Plan for Reactivation "to achieve order with a social focus."

Arosemena, who took office last week, said that he will base this plan on three elements: ensure social spending, lower the cost of living and build public works.

It should be done "that public spending reaches the pockets of Ecuadorians, through services, credits, bonuses and more," he said.

"Ecuadorians feel scarcity. We are going to prioritize and speed up the reduction of arrears so that money flows and stimulates the microeconomy and thus increases people's purchasing power," Arosemena said.

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Precisely the delicate economic situation of the families using in the middle of last June a second indigenous protest that lasted 18 days, left 6 missing and some 400 injured among protesters and members of the security forces, as well as millionaire economic losses.

The first dialogue tables to deal with the issues that motivated the protests will be installed next Wednesday, in Quito. The dialogue process to address all issues will last 90 days.

CLEAR RULES

To advance in the reactivation of the economy with a social focus, Arosemena proposed "clear rules and confidence to grow the economy, and promote the construction of public works and the generation of quality jobs."

The minister said that he will promote work with the different institutions of the central State to deploy the budgetary resources already allocated to help meet, more quickly, the public investment that still needs to be executed this year.

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“The decisions we make will benefit 17 million Ecuadorians. We are prioritizing investment related to social welfare, health, education, agriculture and roads,” he said.

 

In addition, resources will be injected to boost the economies of the decentralized autonomous governments (GAD) through the performance of works in territories, which will help boost the economy of the different communities, the Ministry cannot.

"There will be order and prudence in the management of public finances" and it is expected "to advance in reducing the fiscal deficit until reaching -2% of GDP (Gross Domestic Product) this year; -0.60% of GDP in 2023; 0.5% of GDP in 2024 and have a fiscal surplus by 2025," he added in a statement.

Regarding the Non-Financial Public Sector, Arosemena stated that "the goal is to maintain a surplus: 0.90% of GDP in 2022; and an average of 1.90% of GDP in the coming years."

"Maintaining the fiscal objectives already outlined will allow generating space to strengthen social spending, reduce arrears, contract less debt and strengthen public finances", authorized.

And regarding the extraordinary income due to the increase in the price of oil, he specified that we must be cautious and realistic on this issue because the fluctuation of these values is variable in the international market and just as the price has risen, it has also fallen in some periods. .

The minister reiterated that the economy in the rural sector will be reactivated, strengthening public banks so that productive and low-cost credits reach small farmers, ranchers, artisans and the po[CENSORED]r and solidarity economy.

 

Link: https://www.ecuavisa.com/noticias/economia/pablo-arosemena-plantea-un-plan-economico-de-reactivacion-con-un-enfoque-social-en-ecuador-KC2224185