said the Peruvian economy is not in technical recession, since there are variables that are growing, despite the contraction registered in two quarters.
"It is true that we have fallen in two quarters, but there are other factors which are not being met. Consumption is growing, as is employment; so, it is difficult for us to be in technical recession," he indicated during the 2023 Economic Forum organized by the American Chamber of Commerce of Peru (Amcham Peru) on Wednesday.
In this sense, the economist underscored that formal employment, despite registering a slowdown, has been growing more than the possibility of working.
"It means the percentage of (employment) formalization in the labor market is growing," he underlined.
The
BCR governor emphasized that
total formal employment has been growing since 2021 at significant rates. Last June, this variable grew 3.1%.
"Employment is still growing. Thus, it is very difficult to call this a technical recession," he remarked.
Seasonally-adjusted growth
The issuing entity head disclosed that Peru's economy grew in a seasonally-adjusted manner during the second quarter of this year.
"Technical recession is a term that is used in the United States after studying plenty of variables. It is true that it coincides with two negative quarters, but the second quarter has grown if compared to the first quarter," he noted.
Inflation
The
BCR governor also
highlighted the fact that Peru maintains one of the lowest total and subjacent inflation rates in Latin America, especially in the second component, given the nature of supply shocks.
"We have been very cautious in raising interest rates; therefore, we managed to control the inflation rate without causing so much negative impact. Perhaps if we had reached double-digit rates, as in several countries of the region, the impact would have been stronger," he emphasized.