Public Debt Decreases
The public debt recorded
a spectacular reduction
over the last five
years. It went from 60
percent of the Gross
Domestic Product (GDP)
in 2003 to 45 percent
last year.
To the International
Monetary Fund, the dip
was even larger, because
it quotes 43 percent in
2007.
In addition, its
forecast for 2008 is 40
percent. The lower debt
springs from a
combination of factors,
including production
growth, lower interest
rates, and restricted
government spending.
The impact of the lower
public debt on the
people is perceived in
aspects such as lower
interest rates on loans
for housing, as well as
on the Government’s
ability to invest more
on roads, schools, and
hospitals.
Overall, the image of a
healthier economy
furthers the attraction
of foreign investment,
analysts agree.
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