Speeding up public investment and transfers for immediate interventions will offset the negative effects that coronavirus may have on the Peruvian economy,
Principal Economist of BBVA Research in Peru Francisco Grippa expressed on Wednesday.
"There are positive factors that must be taken into consideration such as
public investment, which may attenuate the coronavirus effect. Lately,
public investment is growing quite significantly and increased more than 50% in the first two-month period," he told
Andina news agency.
"
Public investment has a positive impact on construction, manufacturing, and the services sector. And that will be important to the outlook for Peru's economy next April," he added.
Speeding up public investment
"Speeding up
public investment is positive and we have to make sure the expenditure is worthwhile. If fulfilled, it will revitalize different sectors," the economist stated.
It must be noted that the Executive Branch will transfer S/100 million (about US$28.58 million) to the Ministry of Health to finance the purchase of vehicles, medical supplies, and other biomedical equipment so as to provide adequate care to patients.
Additionally, it will transfer S/165 million (about US$47.17 million) to the Ministry of Education to finance the acquisition of hygiene kits for different educational institutions across Peru in order to ensure proper health conditions and protect children's health.
Likewise, the BBVA economist noted that tourism and exports are more likely to be affected by coronavirus, but it is hard to predict how this will go.
(END) CNA/JJN/RMB/MVB
Published: 3/11/2020