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Moody's: Exports sector to become Peruvian economy's reactivation engine

10:01 | Lima, Nov. 23.

The exports sector is emerging as an engine for the reactivation of Peruvian economy due to the dynamics registered so far in 2021, Moody's Investors Service Vice-President Jaime Reusche has affirmed.

"There is an increase in the demand for Peruvian products which should lead to generating greater investment. Private sector companies are aware that once there is an increase in orders, capital must be increased to produce goods and offer them to the market," he said in remarks to the Official Gazette El Peruano. 

The Moody's officer stressed that this investment cycle is always favorable for the generation of greater economic activity in the country, too.

While business confidence remains somewhat hit, it is recovering mainly due to external demand which remains favorable, Reusche indicated.

"That advantage generates many opportunities we must take advantage of before that momentum begins to fade, as it is very likely to slow down," he noted.

Better performance

The Central Reserve Bank (BCR) recently reported that —since March 2021— Peru has resumed the leadership in terms of non-traditional exports among the region's main economies. As of September, this situation is maintained.

In this regard, the Moody's officer said this is an excellent result.

"What was surprising was the growth, not only compared to 2020, but also to 2019, before the pandemic (began), the year in which non-traditional exports increased significantly," he expressed.

Moreover, Reusche highlighted that this better performance is based on the advance of agro-exports.

"Before the pandemic began, we knew that agro-exports had become a small growth engine which complemented mining (activities) in boosting the national economy," he said.

In this sense, the officer stressed that one of the main advantages of the agro-exports sector is that it leads to a great demand for labor, while mining is intensive in capital (investments).

"The agro-exports sector is a source of formal job creation which boosts the economy. Therefore, their development should continue to being promoted," he remarked.

(END) DOP/SDD/MVB

Publicado: 23/11/2021
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