on Tuesday affirmed that the challenge for the Peruvian economy next year is the transformation of spending with the aim of making it more efficient so as to meet the population's needs.
"We must aim at a structural reform on the spending side, understanding that we do not need an increase, but rather transform emergency spending into permanent spending, one that is better structured and more efficient," Francke commented during his participation in the Moody's Inside LatAm: Peru 2021 seminar.
The Cabinet member argued that Peru has experienced good economic growth for many years. However, social gaps are huge.
"When 40% of children suffer from anemia, when education has a very low quality level and basic services do not reach out to everyone, then we must understand that there are major social situations which require, among other measures, a tax reform," he said.
The high-ranking official specified that GDP growth this year will be 13.4%, while a rise of 3% is expected for 2022.
"It may sound little, but let's take into account that we will start from a very high growth. This year, the economic expansion is based on the domestic market, primary manufacturing, construction, and agro-exports," he indicated.
In 2022, these sectors will be joined by mining given that projects such as Quellaveco, as well as other important investments in infrastructure such as ports and airports, will enter into operation.
"Besides, a return of tourism is also expected and that the service and trade sectors become more dynamic," he explained.
The Economy and Finance Minister also commented that 2022 will be the last year in office of the current regional and local governments.