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“We need measures to prevent imports from being triggered”
Posted On 11 Jul 2017
Ecuadornews:
“Technically the country has entered a phase of expansion, that is to say, we have already passed the bump and started to grow,” explained Verónica Artola, manager of the Central Bank of Ecuador.
In an interview, the economist deepened into the results of the quarterly national accounts. She also discussed the potential impact on the trade balance following the removal of safeguard tariffs.
Q: What is the annual growth of 2.6% in the first quarter?
A: This quarter’s economic growth was based on two factors: household consumption and increased exports. Households started to consume more products that we did not see in past years and there are specific sectors that have reactivated and have not done so for some time.
Q: Precisely, with the elimination of the safeguard tariffs, what is the GDP projection for the next quarter?
A: The elimination of safeguards does strike us negatively, but there are also certain imports that we need for the productive sector. The problem is when we consume goods that are not related to production. Exports are growing, but we do need to have certain measures to ensure that imports do not skyrocket. Other factors that will improve the economy are consumption, private investment and, although not as strong, government investment. We hope to finish this year with growth figures. (I)
