➤ They predict that investment will continue to grow faster than private consumption

The trend of “an investment growing faster than private consumption” will continue in the country, said the consulting firm Ecolatina today., after highlighting that loans to companies “grew 10% in real terms in relation to the pre-pandemic, driven by new lines of financing at subsidized rates”.

The business advisory firm evaluated that a part of these credits goes “to pay salaries, working capital”, but “another part it is helping to recover the investment ”.

“In a similar sense, public works, a State expenditure that generates a lot of employment and consumes little foreign currency, grew 56% real year-on-year in the first five months of the year “, considered Ecolatina.

According to the weekly report of the consultancy, purchasing power and jobs “will slowly recover at best”While public works “will continue to grow strongly, especially in the previous election.”

On the other hand, he added, “The virtual disappearance of operational restrictions in a context of stocks and exchange gaps, in addition to few possible destinations for private savings, will drive private construction.”

At the same time, it is anticipated that the programs to boost consumption in installments “will continue to be limited”, as long as net reserves continue at low levels and debt payments remain the order of the day.

Ecolatina insisted, however, that both consumption and investment “will continue in positive territory, in part because the low comparison bases left last year will boost rates for the next few months.”

The economy in the second semester will be driven by a greater fiscal expansion, a drop in inflation in a context of the official dollar ironed and a recovery in wages, subject to the reopening of joint ventures“Projected the report.

The challenge, he concluded, “will be to extend this good streak to 2022. Once the agreement with the IMF is signed, the space to boost consumption and investment by the public sector will shrink, at the same time as higher debt maturities and lower net reserves could end the exchange rate calm”.