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In our recent Analysis

In the Weekly Review # 01, Enero 5 - 2009-01-05 /11:40

Under ominous signs

After a stellar first half of the year, since mid July the economy started to deteriorate on account of the fall in the price of oil, the reduced migrant remittances as a result of the recession in the industrialized world, and the strengthening of the dollar.

So far the government is attempting to face the crisis with administrative measures, such as blocking imports and taxing the outflow of funds of any kind: imports, to serve foreign loans, whatever. It hints that it will take additional measures that will affect the better off and preserve the poor.

The success of the above strategy seems to depend on how long and how deep will the crisis be. If in a few months the price of oil recovers enough so as to allow the government to pay its current expenditures, and the dollar continues plunging, as it has in December, offsetting gains in 2008...

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