LIMA,PERÚ-ABRIL 26. El Ministro de Economía Alfredo Thorne, inaugura el seminario internacional denominado “Reflexiones en Torno a la Protección Social”. Foto: ANDINA/Vidal Tarqui
Private investment has solid foundations to embark on a growth cycle in Peru, in view of the favorable global growth environment, the country's former Economy and Finance Minister Alfredo Thorne affirmed.
According to Thorne, the business optimism would inject dynamism into investments in a context in which large-scale projects get greater profitability.
He said predictions for next year are very auspicious since they anticipate very favorable economic conditions.
"We expect a 3.7% growth for the last quarter of 2017 and a rise of 4.5% for 2018, with the increasing private and public spending," he asserted.
A more dynamic investment will lead to a labor market recovery since private investment rebound will speed up the demand for formal workers and will improve the quality of jobs created.
Challenges
Nevertheless, the former minister assured the South American nation will be facing new challenges next year, including a possible seasonality of fiscal stimulus.
"Investment needs to become the growth engine to avoid this situation," Thorne affirmed.
"Likewise, a decline in private spending would be difficult to offset with public spending, bearing in mind private spending —consumption plus investment— represents more than 80% of GDP," he added.
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Published: 12/14/2017