Andina

Peru: Public investment to set historical record in 2021, GDP to grow 13%

Photo: ANDINA/Presidency of the Council of Ministers

Photo: ANDINA/Presidency of the Council of Ministers

16:00 | Lima, Nov. 26.

Economy-Finance Minister Pedro Francke on Friday projected that public investment execution will mark a historical record level this year, which will be joined by greater private investment dynamism, enabling the economy to grow 13% in 2021 and reflecting a rapid recovery.

The Cabinet member indicated that public investment execution this year will amount to S/36 billion (about US$9 billion) —a record never achieved before.

"We are confident that it will remain this way next year," the minister expressed.

"The Peruvian economy will grow 13% this year, which proves that we are recovering at a pace beyond projections," Francke said. 

"We agree that private investment is essential," he added in remarks to RPP radio and TV station.

Oil prices

Moreover, the minister affirmed that, although the rise in oil prices has caused worldwide concern, there are countries with inflation rates higher than ours. In this sense, the analysis indicates that it is a temporary phenomenon.

"It is not a good response to control prices, and the best we can do is help people; we have also created jobs. The Yanapay Peru government grant has been delivered and we are delivering a labor grant," Francke noted.

"We try to ensure that the response is neither populist nor arbitrary. Price control is ruled out," he added.

(END) JJN/MVB

Published: 11/26/2021