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Peru's Central Bank: Public investment may grow again in Nov 2020

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16:49 | Lima, Nov. 20.

Peruvian Central Reserve Bank (BCR) Governor Julio Velarde on Thursday announced that public investment may rise again in November, adding that this boost will be essential for accelerating the national economy's recovery process.

"We can do a lot with a monetary policy, but public investment is essential if we want the recovery to be fast," he expressed.

The BCR official highlighted that the multiplying effect of public investment on the economic activity is much higher than that of current spending.

"It is even greater than the multiplier generated by the tax refund," he remarked.

Velarde said a document —issued by the International Monetary Fund (IMF) last October— had indicated that the multiplying effect of public investment in the economy is almost 2.7 times.

The economist also explained that information on public investment (available until November 17) suggested that the figure will be positive this month.

Public investment grew in October


Last October, public execution reached S/3.652 million (about US$1.009 billion), while in September it totaled S/3.426 billion (about US$947 million).

(END) SDD/JJN/MVB

Published: 11/19/2020
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