Faced with the economic crisis caused by Covid-19, where the central banks of several countries chose to lower their interest rates and their debt was increased to face the pandemic, emerging and advanced economies will begin to adjust these monetary policies, which could place countries with less room for maneuver.
“When international markets are uncertain and local markets dislocate, the debt that increases is foreign, in such a way that countries, I believe, worldwide are going to face less room for maneuver in fiscal policy, but also in monetary terms the following years ”, predicted Gabriel Yorio, Undersecretary of Finance and Public Credit (SHCP) during the inauguration of the IMEF 2021 National Convention.
The official, who was representing the Secretary of the Treasury Rogelio Ramírez de la O, explained that the foregoing will make countries start working on the supply side, that is, create an agenda focused on deregulation, simplification, as well as eliminating and reducing the costs associated with productive devices, which several of them they are generated by corruption.
He added that the recovery of economic activity is a reality worldwide; however, countries are recovering at different speeds given the characteristics they possess.
“There is a high probability that the Covid will be classified as a disruptive event that will probably change the way we are going to delineate the economy”, He said, at the same time that he specified that the effects of the pandemic are not short-term and proof of this is that the world has already been dealing with and living with it for two years.