The
Central Reserve Bank (BCR) considers that the consistent reactivation of the construction sector will have a direct positive impact on the generation of new jobs due to its multiplier impact on the economy.
"If there are sectors that become strongly reactivated, such as construction, there will be greater job creation that will probably enable the informal sector to reactivate," BCR Governor Julio Velarde said during the recent presentation of the latest
2023 Inflation Report.
The economist indicated that this, in turn, would reduce urban poverty, which has increased since the COVID-19 pandemic began.
Velarde explained that this situation resulted from the loss of income and working capital, mainly among informal workers.
"The COVID-19 pandemic hit us hard; what we have seen is that the informal sector substantially lost income and working capital. It simply had to use its resources to withstand that confinement," he said.
Recovery
Without working capital, they (construction companies) could no longer hire the helpers they had in the informal sector, and all of this spreads to other sectors, the BCR governor indicated.
"Income from the informal sector fell sharply, and it will take time to recover," he expressed.
The BCR head argued that greater economic dynamism will result in greater spending, which will be transferred to the informal sector so that its members can have greater income.
Yet he warned that this "is part of a process."
(END) GDS/SDD/RMB/MVB
Publicado: 3/1/2024