Alvaro Colom of the left-of-centre Unidad Nacional de la Esperanza (UNE) will take office for a four-year term as president on January 14th 2008 following his victory in the November 4th second-round presidential run-off. Mr Colom has promised to increase spending on education, healthcare and rural development, but limited fiscal resources will hamper progress. The UNE’s lack of a simple majority in the 158-seat Congress, where it will control 51 seats, will leave it having to forge political alliances to pass legislation. Firm domestic demand and developments in the external sector will support GDP growth. The authorities will struggle to contain inflation in the context of ongoing domestic and external price pressures.