The aim is to increase consumption in the summer and try to slow the economic slowdown, a concern that has been acknowledged, for now, only in the corridors of power.
A member of the Executive's inner circle, not identified by the weekly, justifies the measure's rapid entry into force with the holiday period and the start of classes in September, guaranteeing that it has “no relation” to the municipal elections, scheduled for the autumn. However, this anticipation hides the fear that economic growth this year could be below forecasts (2.4%), with sources in the government admitting this scenario as being possible.
During the first quarter, according to the National Statistics Institute (INE), the economy registered a contraction of 0.5% compared to the previous three months, a sharp slowdown compared to the 1.4% recorded in the last quarter of 2024 – with a reduction in private consumption. If the data until the end of this month shows a new contraction, the country will technically enter a recession.
If the government discourages immigration from wealthier countries then they shouldn’t be surprised by lack of growth. It would smarter to encourage an influx of foreigners with money to spend. Otherwise the population will continue to shrink and growth will be impossible!
By Michael Butterworth from UK on 27 Jun 2025, 21:03