The Government, in the voice of the Minister of Economy, Lucas Palacios, on Tuesday addressed the 14.1% drop in Gross Domestic Product (GDP) during the second quarter of the year. Asked respect the sanitary protocol so that the economic activities that have been hit the hardest by the pandemic can continue to gradually resume.
The figure compares unfavorably with the 0.2% expansion registered in the first quarter; and the published value was slightly worse than expected, as the market projected it to be only -14%.
Its about worst record since the economic crisis of 1982 (from when the Gross Domestic Product -GDP- was -13.6%) and from the official data dating from 1986.
“We knew from Imacec that GDP was around -14% and what we have seen is a decline of 14.1%, which it is something that is being observed all over the planet “Palacios commented.
The minister recalled that the figure goes hand in hand with the resounding falls that sectors such as transport, restaurants and hotels have suffered. From the spending perspective, lower household consumption and lower investment were also reflected.
Despite this, the Minister of Economy said that “already at the beginning of the third quarter we are seeing a turning pointWe are seeing the light at the end of the tunnel and that has to fill us with optimism ”.
In this context, he opined that “it is important to change the state of mind because economics is not an exact science: it is a social science that is also affected by expectations.”
Finally, he stressed that there are already several regions that are beginning to recover with the opening of shops and restarting activities.
“And for that to continue happening, the sanitary protocol must be respected”, he concluded.
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