Andina

Peru: Public investment boosting non-primary GDP

Metro de Lima y Callao

Metro de Lima y Callao

00:00 | Lima, Aug. 15.

Peru's non-primary sectors likely grew around 2% in June, a significant upturn over the January-May 0.8% reading, Economy and Finance Minister Fernando Zavala projected on Monday.

Such outlook is grounded on "a greater boost to investment in public projects," as evidenced by the 6.7% rise in the public work physical progress index.

This rebound was further accentuated in northern coastal regions —battered by Coastal El Niño floods and landslides in January-March— where public investment soared by 22% in real terms. 

This, in turn, would have enabled the construction field to grow 4.1%, thus overcoming 9 consecutive months in the red. 

"From now on, we need public investment to pick up faster than it did in June to offset the downturn we expect in primary sectors," the Finance head affirmed. 

In this sense, Minister Zavala noted the Government seeks to expedite public investment in the short-term so that it underpins the private sphere rebound.

This is expected to translate into "more employment, financing and ultimately better consumption conditions for Peruvian families."

Lastly, the cabinet member revealed the government is "designing a series of expansionary fiscal policy measures geared towards re-allocating the public budget to projects and maintenance with high execution that lack budget."

(END) DHT/MVB

Published: 8/15/2017