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Fin Min forecasts recovery and growth rates of 4% for Peru's economy as of April 2023

Photo: ANDINA/Presidency of the Council of Ministers of Peru

Photo: ANDINA/Presidency of the Council of Ministers of Peru

09:00 | Lima, Mar. 16.

Economy and Finance Minister Alex Contreras has estimated that the Peruvian economy will recover in the following months and experience a growth rate of 4% in April this year, following the January result that showed a decline of 1.1%.

The government official affirmed that the negative result posted last January was basically associated with the impact of social conflicts, which triggered negative effects on mining production and on some services that affected the trade sector.

"We foresee that economic activity will recover in the following months, its pace will accelerate and could even reach rates close to 4% as of April," he stated.

Contreras pointed out that this forecast is in line with a significant recovery in 12-month business expectations, which were pessimistic and are now once again optimistic.

"The 12-month expectations are already in the optimistic range, the three-month expectations have recovered, and we believe they may continue to recover in the following months," the minister noted.

The Cabinet chief explained that this recovery in economic activity is already observed in some important indicators, such as electricity production, which has been growing at rates close to 7%.

Likewise, the Economy and Finance sector's head pointed out that physical progress of public works has been observed, achieving a rate of 40%.

"This is going to be key to the recovery. An important element has been public investment, which is led by the National Government and is growing at rates close to 30%," he remarked.

"Undoubtedly, the presence of Cyclone Yaku and a probable El Nino (event) are changing the economic scenario, but we are responding to it. The Con Punche Peru Plan, which is more than 70% complete, will be key to helping the economy revive," Contreras underlined.

Moreover, the high-ranking official emphasized that the Executive Branch sent a supplementary bill for S/8.232 billion (about US$2.164 billion) to Congress two days ago, which will be important to continue financing investment projects.


Publicado: 17/3/2023