Spanish
The Minister of Finance and Economy, Magín Díaz, announced today that the Government has the tools and strategy necessary to protect the national economy and citizen well-being in the face of the growing uncertainty of the global geopolitical landscape due to the crisis in Iran which, among other things, is putting pressure on oil prices.
During his intervention in the program "El Sol de la Mañana", the head of public finances and fiscal policy emphasized that macroeconomic stability is the main defense against external shocks. In that sense, he sent a message of reassurance to the population by reiterating that they are working hard to mitigate the impact of the rise in fuel prices and guarantee the supply of basic products.
Faced with the situation, he detailed that the Government is in permanent session, including sectoral institutions such as the Ministry of Agriculture, and there is close collaboration with the Central Bank to adopt the necessary decisions to preserve economic, social, and political stability.
The official said that, as a preventive measure, a large part of the financing established in the 2026 General State Budget was completed during the first quarter. He explained that a fiscal space has been created that would allow the redistribution of less-priority items towards the most vulnerable sectors, thus cushioning the effects of the crisis.
Likewise, he highlighted the country's solid creditworthiness, which facilitates -if necessary- access to international financing sources with competitive rates, similar to those of investment-grade nations. In addition, there are sufficient deposits in the financial system to have resources.
The minister pointed out that the rise in oil prices leads to increases in other areas such as electricity, but that, thanks to the diversification of the energy matrix, the impact is expected to be less than in other crises.
He explained that this new situation adds to a series of external shocks that the Government has had to face, starting with the covid-19 pandemic, going through the Russia-Ukraine war, and more recently the tariff war and the highest interest rate season in history.
Boost to public investment
Regarding the structural deficit of the Gross Domestic Product (GDP), which is currently around 3%, the minister acknowledged that this situation has historically limited the State's investment capacity. However, he emphasized that one of his main management objectives is to reverse the trend of low public investment. "Public investment is an indispensable complement to economic growth and private investment. If we do not increase the resources allocated to basic infrastructure that the private sector needs to produce, it could become a bottleneck for economic development," concluded Díaz. Additionally, he added that strategies are being sought to adopt administrative measures against evasion in order to increase State revenues and have the necessary resources to continue increasing investment.
