In view of the new tax reform (Law 253-12), some economists are predicting a reduction of the Gross Domestic Product for 2013, which will accompany a loss of competitiveness for the productive sector and have a negative impact on the middle and poorer classes. Eduardo Tejera and Henri Hebrard made these dire predictions in separate statements.
Tejera told reporter Candida Acosta from Listin Diario that 60% of the new taxes were indirect, and would therefore have a stronger effect on the middle and poorer classes. He suggests an interest rate reduction and the promotion of financing for productive sectors such as construction, in order to activate private demand. For his part Hebrard said that GDP would only grow by 2.5% or 3%, and that inflation would be in the region of 6% to 7% and job growth will be slow. He told his interviewer on the “D’Agenda” television show that the government needs to strike a deal with the International Monetary Fund and stand firm against an increase in the electricity rates. He also suggested that the Economic and Social Council be reconvened to discuss the much-mocked pacts on taxes, electricity and education.