Were they to be deactivated without any countermeasures in place, the deficit would be around 3 per cent of GDP in both years. For budgetary policy to support economic activity effectively, it must preserve confidence in the improvement of the public accounts and the reduction of the ratio of debt to GDP.
The external payments position is seen to remain as a source of strength for the economy over the near term. Dollar inflows particularly from remittances and foreign investments are likely to remain robust. This should enable us to further build up our cushion of international reserves, and continue to provide support to the peso.