17.Jan .2020 19:10

PMCG: sectors like Real Estate and Construction are especially vulnerable to exchange rate shocks

Back

“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.