The second main policy challenge is to secure fiscal sustainability in the medium term through the strengthening of tax revenues and the implementation of prudent fiscal policies reflected in the stabilization of the rising debt-to-GDP ratio and the reduction of the fiscal deficit to levels below 2 percent of GDP.
This is particularly crucial as we need to restore fiscal maneuver in the short term in order to be able to address a more severe global economic downturn or the impact of a natural disaster which in fact is very likely to happen as Guatemala is among the world’s most vulnerable countries to experience natural disasters.