The President of the Council of Ministers, Gustavo Adrianzén, assured today that public investment in 2024 will reach 49.7 billion soles (around 13.37 billion dollars), the highest figure in the history of Peru, which reflects the government's commitment to decentralized development.
“The government of President Dina Boluarte firmly believes that public investment is one of the catalysts for the movement of the economy. We have broken records in this public investment. This year, we will reach a public investment of 49.7 billion soles, the highest figure in the history of Peru,” he said.
Adrianzén also said that this boost will also help the performance of regional governments, which until November increased their execution by 41.42 %, and local governments, with an increase of 13.58 %.
“These figures reflect our commitment to decentralized development, promoting projects that generate employment and improve the quality of life of all Peruvians,” he said in an article published in the Official Gazette El Peruano.
He specified that 2024 was received with the challenge of reversing the fall of the Gross Domestic Product (GDP) by -0.6 % during 2023, which forced the Government to prioritize economic reactivation and this allowed an economic growth of 3.2%, surpassing economies such as Uruguay (3.1%), Brazil (2.9%) and Chile (2.4%), and doubling the regional average of 1.8%.
“This achievement is not fortuitous, but the result of correct decisions and the strength of Peruvians. Likewise, we are aware that, to close the poverty and employment gaps, we must grow at a higher rate,” he said.
He stressed that national productive activity is in full recovery. The imports of capital goods and construction materials, grew 12.16 % in October 2024; the fishing sector registered a record growth of 20 % between January and October 2024, and the agricultural sector grew 13.41 % last October.
Meanwhile, foreign trade is one of the most important pillars for achieving the development of the economy, with exports totaling 61,132 million dollars between January and October 2024, growing 10.8 % year-on-year. This dynamism will allow increasing the trade surplus at the end of the year, exceeding 23,688 million dollars.
At the macroeconomic level, Gustavo Adrianzén indicated that inflation converged within the Central Reserve Bank's target range since April, standing at 2.27 % in November, which provides stability and business confidence and allowed rating agencies such as Moody's and Fitch Ratings to improve their outlook on Peru.
"Meanwhile, domestic demand shows consistent progress, with an average growth of over 3 % in the first three quarters of the year. This progress translates into a tangible improvement in employment: 280,000 Peruvians found work this year, while the unemployment rate in Metropolitan Lima fell from 6.6 % to 5.7 %," he explained.
Projections for 2025
The head of the Ministerial Cabinet, likewise, specified that 2025 is shaping up to be a year of consolidation.
“Business expectations remain optimistic, international reserves remain at a level of 29 % of GDP, the highest level in Latin America, and sectors such as tourism and strategic investments in mining and infrastructure will continue to drive growth,” he said.
The Ministry of Labor and Employment Promotion also projects the creation of 470,000 jobs for next year, he said.
"The Government reaffirms its commitment to work with responsibility and vision for the future. Peru is on the right path, and together, we will overcome the challenges to build a more prosperous and equitable country. Economic growth is not just a number; it is the path to improve the life of every Peruvian man and woman,” he said, after wishing Peruvians Merry Christmas and a prosperous New Year 2025.
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Published: 12/26/2024