The mandatory social isolation implemented in Peru since mid-March —in order to protect the population in view of the rapid spread of COVID-19— generated a strong impact on the economy of the country, but an important recovery is now underway,
BBVA Research Chief Economist Hugo Perea affirmed on Monday.
In the second quarter of this year, the economy contracted 30.4%, one of the worst declines in the last 100 years, according to the Central Reserve Bank of Peru (BCR).
However, from May to date, the Peruvian economy has experienced the strongest rebound in the region, as a result of different factors including the correct measures taken by the Ministry of Economy and Finance (MEF) and BCR.
"Indeed, we saw a strong drop in April, but we are also seeing a more pronounced rebound since May. That's what should be noted," Perea told Andina news agency.
Moreover, it must be pointed out that the Peruvian economy has seen a steady recovery since May, according to official figures from the National Institute of Statistics and Informatics (INEI).
Perea explains that this month-on-month recovery responds to the economic reopening since May. "If you reopen an economy that was closed, the rebound will be significant," he said.
According to the economist, another component that complemented the orderly reopening of economic activities was the implementation of good fiscal and monetary policies.
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Published: 10/19/2020