The public sector has become a crucial player in the behavior of GDP. The question is whether it is sustainable to grow at the expense of public spending amid a fiscal squeeze that the current government has not known how to control and that only demonstrates improvisation and poor economic management.
A report prepared by Anif ( national merchants association ) recorded that the execution of the investment item reached 9.1%, according to data from the Economic Transparency portal of the Treasury portfolio itself. Which means that of every $100 approved in the document, only $37 was paid for Government obligations.
It would be expected that now, with a scenario where interest rates begin to fall and with a favorable tax reform for companies, where the private sector would take the reins of growth.
There are already some signs in that sense. According to calculations by the Financial Superintendency, the country has had real negative growth in the commercial portfolio for months and, now, for the first time, it is approaching 0% growth, which shows an upward trend.
The low growth of the portfolio continues to deepen (+0.9%), which since December has grown at less than 3% annually, a past due portfolio that continues to advance, although it slowed its growth rate to 16.3%, after growing on average 34% since February 2023 and a lower profitability when compared to the same period of the previous year, reaching 6.3%. However, although there is a change in the trend, it is still not enough for the country to make leaps in its competitiveness and productivity; in advancing and consolidating the diversification of its productive apparatus and its exports; as well as making progress in the fight against poverty and reducing business and labor informality.
In the same way, the Government must cut spending and better target subsidies, while advancing structural reforms such as pension and labor reforms; What is true is that the economic outlook is reflected in our casinos and halls, where collections remain very stable.
Remember that casinos do not have access to bank credit and the presence of Coljuegos is zero in support, we will have to overcome all of this alone with the help of industry suppliers.
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