“Sectors like Real Estate, Construction and Education are especially vulnerable to exchange rate shocks”, PMCG notes in recently published research.
‘The possibility of a regulation reversal has been met positively by the private sector. Some have even stated that the reversal is necessary to “avoid having a negative impact on economic growth”, PMCG research notes.
“The dollarization rate in the private sector is at 70%. Compared to the households’ 41% this number is abnormally high. Sectors like Real Estate, Construction and Education are especially vulnerable to exchange rate shocks, “PMCG research notes.
“Furthermore, each sector has its own borrowing characteristics: more than 90% of the construction sector debt is in foreign currencies, while for financial intermediation the same number is 41%”, PMCG research notes.
