What measures should be taken to prevent a recession?
José Manuel Restrepo, in dialogue with El HERALDO, indicated that to face this reality, messages of assurance of confidence in private investments must be sent by the government. “Since the discussion about reforms that have effects contrary to those of private investment is not helpful at all, it is also not helpful with the philosophical messages of, among other things, adjusting fiscal rules or adjusting the functions of the central bank. There have been a number of sectors where public policy messages have been wrong, as is the case with the energy transition, including public services. So it is without a doubt a bad result. It sends a bad message about what is already the ‘First month of the last quarter. Bad sign. Let’s hope that this result will be adjusted in November and December so that it is not negative in the end, in the last quarter of the year, and that will not put us in a recession scenario.”
Mac Master indicated that “it is very important for the country to reverse this situation, as only through investments, strengthening of business and the promotion of entrepreneurship will it be possible to reverse the stagnation in the labor market observed in recent months effectively reduce and reverse the high level of informality that, as I said, prevails in the country.
No to populism
Jaime Alberto Cabal took the opportunity to point out that secondary activities, including industry and construction, saw the largest decline: -5.2%, while tertiary activities, which include services, fell by 0.4% fell. If we look only at the cluster of trade, transport, accommodation and food services, the decline in the month of October was 5.4%.”
Regarding the need for the government to design and implement a shock plan to prevent the economy from deteriorating further, he pointed out “that no populist measures are taken, neither in the minimum wage decision nor in the labor reform project. The administration and members of Congress must listen to the signs of an economy that could cause many social problems next year.”
Bruce Mac Master indicated that some of the factors that led the Colombian economy to these results, and on which the Andy has been attracting attention for months, these are: declining demand, high interest rates and high production costs, and all this with high inflation.
“Other causes of the slowdown are also based on the deterioration of the investment and business environment. For this reason, we at Andi have called for a restoration of confidence in the economy, for which we believe it is crucial ‘that a strategy must be developed to promote economic growth, in the short and long term , which covers the different sectors and also creates conditions that reactivate investments both in the public sector and in joint projects with the productive sector.” Mac Master pointed out.
Source: El heraldo

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.