has projected that Peru's economy would grow 3% in the second half of 2023 supported by improvement in domestic demand, in line with the dissipation of social conflicts, lower inflationary pressures, and more favorable financial conditions.
All this is joined by measures to boost the economy and address the climate emergency, in accordance with the Multiannual Macroeconomic Framework (MMM) 2024-2027 published in the Official Gazette El Peruano on Tuesday.
The MMM specified that the higher domestic demand dynamics expected in said period would be explained by private investment recovery.
Thus, this variable is expected to once again register positive growth rates from the second half of this year, which would extend towards 2024 due to greater non-mining investment in infrastructure, hydrocarbon blocks, and diversified investment, such as retail and logistics.
Public investment
"In the same line, public investment will be an important support for the economy in the face of the highest historic budget allocation so as to boost the closing of infrastructure gaps," the MMM indicated.
The document explained that the historic budget allocation will also contribute to relying on more resources for rapid execution projects, training and permanent technical assistance to entities from the three government levels, expediting the execution of prioritized portfolios, such as the National Plan for Sustainable Infrastructure for Competitiveness (PNISC), providing support for the release of interferences, and unlocking (public) works of great impact.
"Investment recovery will boost consumption through the generation of employment and progressive increase in household income, in addition to the implementation of temporary measures that provide liquidity to the most vulnerable families, within the framework of the Con Punche Peru (Peru with Strength) plan," it remarked.
Likewise, the MMM forecast that GDP growth will be favored by the increase in exportable supply thanks to greater mining production of copper and molybdenum by Quellaveco and of agro-export products, such as blueberries and grapes, plus the recovery in fishmeal shipments next year.
MEF: Social programs will be reinforced in 2024 public budget
Added to this is the increase in demand for manufactured products, such as textile and chemical ones, associated with progressive external demand recovery.