João Mosca predicts worsening economic crisis in 2018

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João Mosca predicts worsening economic crisis in 2018

12:31 CAT | 22 Jan 2018

O País

Economist João Mosca says that, although the price of goods and services have fallen, they remain beyond the purchasing power of the population, and that the crisis could worsen even further this year, especially for low-income families.

“Despite having declined, inflation continues to be greater than the rise in people’s purchasing power, especially the poorest. So the standard of living of the poorer social groups is going to worsen this year, which means that poverty will increase more for low-income consumers who consume imported goods and also some domestic goods,” he said.

One of the solutions proposed by the economist is the relaxation of the International Monetary Fund’s conditions in relation to the hidden debts.

“The idea that we can survive in the short term without external contributions is not true. One can live, but with very high social costs. Although inflation has fallen, it remains above the purchasing power of the poorest. There is a certain relationship of trade and transport, but small and medium-sized enterprises are not yet producing.”

The economist says that central bank monetary policies have not yet begun to take effect on the real economy, which continues to post declining economic growth rates.

By Fidelton Emídio

Source: O País