Economic downturn, a reality for employers before the government admits it

Employers go through economic downturn long before the government talks about it.

The fact that Ecuador’s economy is going through a difficult timewas known since last year. The country may register a decrease in 2015, this was admitted for the first time on Tuesday by President Rafael Correa before foreign correspondents. However, it is not something that surprises employers.

“We were not taken by surprise” is one of the most repeated phrases by representatives consulted by EXPRESO. Roberto Aspiazu, executive director of the Ecuadorian Business Committee, says they could see it coming five months ago, and that the drop in sales and consumption is a true reflection of the economic downturn in the country.

This scenario, according to Joselo Andrade, a researcher of the Ecuadorian Institute of Political Economy, will last for a while, since the economy of our country depends on uncontrollable external factors such as oil prices and the dollar rate.

That is why they all agree on seeking a change of the current model that promotes the activity of the private sector as a source of income. Something that, in the view of employers, is contradicted by standards such as capital gains or inheritance that the Government has decided to resume.

Henry Yandun, president of the Chamber of Construction Industry, told to EXPRESO daily that it was time of incentives and the two laws drive away the wishes of investment. He also noted that projects are contradicted by other government initiatives that seek public-private partnerships.

On that coincides Patricio Alarcón, president of the Chamber of Commerce of Quito. For him, these bills (temporarily withdrawn) are confiscatory. The Gross Domestic Product (GDP) will decrease more than expected if the government continues to insist on such regulations, he added.

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8406611&idcat=38269&tipo=2