The Address to the Nation that the
President of the Republic Dina Boluarte will give at Parliament on the occasion of National Holidays may be the first step to regain business confidence,
Moody's Investors Service Vice-President Jaime Reusche said.
"The Address to the Nation that President Boluarte will deliver on July 28 can be a first step towards regaining the confidence of the private sector," he told
Andina news agency.
Reusche pointed out that said message must bring consistency between what is announced and the actions carried out.
In addition, he noted that the private sector should continue to be informed about what is being done in order to consolidate the recovery of investment.
"We have noticed that the Ministry of Economy and Finance (MEF) is making very concrete efforts to anchor business confidence, but this part of the communication is not being received and is not resonating. So, it is a matter of repeating the message of open communication with the private sector," the Moody's officer emphasized.
Conciliatory message
In this regard, Reusche remarked that he expects the Head of State will send a conciliatory message to the private sector, taking into account that the Executive Branch is aware of the fact that there is still a major weakness in the country's business confidence.
"As discussed with MEF experts, they are aware that beyond the fact that the Con Punche Peru (Peru with Strength) program is being implemented, there must be a highly conciliatory message to try to shore up business confidence and re-boost the economy's growth engine, especially after the surprising contraction of the economy (registered) in May," he underscored.
Political context
Moreover, the Moody's representative affirmed that nowadays Peru coexists with a somewhat convulsed political environment, with a bit hectic social environment, which still impacts investment decisions.
(END) RGP/SDD/RMB/MVB
Publicado: 27/7/2023