projected that Peruvian economy will be dynamized in the last quarter of this year. Thus,
"We are expecting public investment to help on the spending side and on the sectors side. We see a recovery in mining production," he explained during his presentation at the American Chamber of Commerce of Peru (AmCham Peru) last Friday.
While presenting the Macroeconomic Outlook 2022-2023, the BCR head projected that for next year limited progress is expected in non-primary activities, related to consumption, due to a contraction in fishing and its associated manufacturing, as well as low growth of mining production.
"Growth in 2023 will be in line with the expected recovery of mining, and assuming a year of normal conditions for fishing," he pointed out.
On the spending side, the official said private investment is expected to remain at levels similar to 2022, affected by low business expectations and the lesser boost from self-construction.
"Meanwhile, public investment in 2023 might be affected by the low execution by subnational governments," he indicated.
Pre-pandemic levels
Afterwards,
Velarde highlighted the fact that Peru's economy has remained above its pre-pandemic level since mid-2021.
In this sense, he specified that the seasonally-adjusted index as of September 2022 is 104.4 points, taking the fourth quarter of 2019 as a reference (100 points).
As is known, the BCR head affirmed that the policy to be implemented by the Central Bank in 2023 will not affect the country's economic growth.
"Other countries, even in the region, are looking to cause a recession in their economy to stop inflation. In our case, we believe that inflation can indeed be controlled by expanding around potential growth, without causing a recession," Velarde underlined.