Andina

Transfer of govt resources to invigorate private investment in Peru

Reconstrucción con cambios.

Reconstrucción con cambios.

09:37 | Lima, Oct. 10.

Peruvian Government's transfer of over S/1.273 billion (about US$388.9 million) into regional and local public projects will contribute to stimulating private investment, the Lima Chamber of Commerce (CCL) informed.

The Executive sent a bill to Parliament aimed at revitalizing public spending execution, which embraces transfers worth over US$388.9 million to implement investment projects on a regional and local basis.

"Private investment —which has been declining over the past years— will be encouraged if public investment revives. This project seems good to me, because it will stimulate the economy," CCL's Institute of Economics and Business Development (IEDEP) Executive-Director Cesar Peñaranda told Andina news agency.

The national economy needs to reverse public and private investment's downward trend seen in recent years, he affirmed.

Likewise, Peñaranda asserted emphasis should be put on public resources at all levels of government in a bid to boost the economy with big fiscal spending.

He went on to say said transfers will have a major impact on the Inca country's gross domestic product (GDP) in 2018.

(END) MDV/JJN/RMB

Published: 10/10/2017