Central Reserve Bank (BCR) Governor Julio Velarde stated on Monday that private investment recorded 10% growth in 2025, a figure reached after several years.
"Last year, private investment grew 10%, which was good news after several years. But during the previous boom period (high mineral prices), in the years between 2005 and 2012, private investment grew by more than 20%," the economist indicated.
"During the 2006-2012 period, public investment also grew at rates of 20%, and we had a surplus because current spending was controlled, which made it possible to build up the Fiscal Stabilization Fund; this is precisely meant to be strengthened in good times and used in lean times," Velarde said.
"At this moment, we should have a surplus with those prices (for minerals), but we have a deficit. Public spending has not grown because of investment; it has grown because of permanent current spending, which has no impact on economic activity," he added.
"In 2006, the fiscal rule that imposed a limit on how much public spending could grow was changed; in other words, the limit for current spending was maintained, but it was liberalized in the case of public investment," he indicated.
Meanwhile, the BCR governor said a construction sector boom was seen in the 1950s, as investments were carried out because there was political stability in Peru.
"There was a huge construction boom, with school complexes, residential units, the National Stadium, the Ministry of Education, and so on. That has largely not been seen now because of political instability," Velarde noted.
"If I say that imports of durable consumer goods are growing at a rate of 33%, not only in this first quarter of the year but since last year, and that IGV (sales tax) is rising 13%, people do not seem to believe it, because it is not fully materializing as investment," he added.
Velarde said Peru faces major challenges. He added that something must be done to establish a merit-based civil service because otherwise little can be done to improve the quality of public services Peru needs.
"There is truly still much to be done, and I believe it can be done. It is an effort that corresponds to all of us," he concluded.
(END) CNA/MVB
Publicado: 27/4/2026