:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/75SWBVQ2QVCL5KTDYYEIBL2UR4.jpg "They ask to manage the Colombian economy with competence, without emotions and with commitment")
A call to national government Yet the Board of Directors of the Bank of the Republic “to manage wisely, without emotions and with commitment to the country” said the professor of public finance and budget at the Universidad del Rosario Henry Amorocho.
This, by making known its analysis “Economic growth and the road to development 2023… in ellipsis” and remembering that 2022 has remained in the retina of Colombians as one of the most opaque periods in terms of the effectiveness of the management of the so-called integral monetary control of the Issuer and the State.
“Efficiency is necessary in the formulation, financing and execution of public policy which is approved in the Four-Year Development Plan, as well as in the possible texts of labor, health and pension reforms which are determined in the legislature,” Amorocho remarked.
For the expert, it is relevant to actively execute the Annual investment plan 2023 and the application of dynamic inter-institutional coordination and execution mechanisms. royalty investment projects, Findeter, Enterritorios and public expenditure management and execution stemming from the approval of the 2023 structural reforms.
“In the same perspective, the State is required to act as a driving mechanism for economic growth in the current term and in the role committed to generating more than one point of growth in GDP (Gross Domestic Product) in l ‘year 2023,’ said the academic.
According to him, if the behavior of the State with regard to the execution of investment expenditure is languid and late, like that of the last five decades, if the policy of increasing the intervention rate of the board of directors of the Banco de la República will continue until August or September and if the uncertainty of the financing of the plan and the reforms n is not defined in the stage of debate and approval of the Congress of the Republic, economic growth could be between 0.7% and 1.3% of GDP as of December 31, 2023.
In his analysis, the expert recalled that the work of the State from the point of view of planning and execution of public policies it wasn’t enough in 2022far from timely.
“They were blinded by seeing the beam in each other’s eye of Russia’s war on Ukraine and the supply chain crisis, among other things, and they were not dedicated to observing. the great bundle that had deepened internally as a result of the repetitive preaching of raising the interest rate to deal with the inflationary phenomenon,” he commented.
noted that no steps were taken to judge adverse effects which had taken place in the rise in prices due to the harshness of the winter, added to the ineffective action of the Bank of the Republic in terms of persuasive control to counter the strong speculation on the exchange rates, which led the dollar to historic highs in November 2022.
The result that follows from the bad economic and monetary policy which was carried out to fight against inflation was that as of December 31, 2022 there had been a 133% increase in the Consumer Price Index (CPI) Regarding the evolution of the interest rate, this variable increased by 585% and the exchange rate devalued by 20.2% during the 12 months of last year.
For Amorocho, previous results are too bad for the economy as a wholeas they directly affect the real sector and the sustainability of economic recovery.
Indicators such as the previous ones are a major challenge for achieving sustainability, drop in unemployment and stop the dynamics of economic downturn in 2023.
However, he advised that they apply monetary, fiscal and general coverage public policy measures which reduce the inflationary pace, propel the fall of the interest rate and aim to achieve an exchange rate at levels of convergence with market fundamentals.