BCR: If level of December 2021 is maintained, GDP will grow 2.7% in 2022

Photo: ANDINA/Vidal Tarqui

Photo: ANDINA/Vidal Tarqui

11:00 | Lima, Mar. 8.

Central Reserve Bank (BCR) Governor Julio Velarde on Tuesday indicated that if the level of economic performance of December 2021 is maintained, Peruvian GDP growth will be 2.7% this year.

"Much of this year's growth will be due to the growth paved last year. Let me explain, if the level of December is simply maintained, this year's GDP will grow 2.7%," he said in remarks to RPP Noticias.

"We are growing better than the region; nonetheless, Latin America has been performing very poorly in recent years," he added.

Velarde recalled that Peru had faced political crisis linked to the resignation of former President Pedro Pablo Kuczynski (2018), the impeachment and removal from office of successor Martin Vizcarra (2020), and other economic problems.

However, he said, Peru more or less continued to grow, as the rules of the game were expected to be maintained.

"In the case of the pandemic, I think that there was a good reaction in general; perhaps what was very strict was the confinement," Velarde expressed.

On the other hand, the economist indicated that the BCR projects a private investment growth rate of 0% for this year.

"During the fourth quarter of last year it was already growing quite low, 3%, despite having ended the year growing 40%," he explained.

Likewise, the BCR governor commented that public investment has been falling over the recent five months, after having been growing since the administration of former Economy Ministers: Maria Antonieta Alva (2019-2020), Waldo Mendoza (2020-2021), and the first three months of President Pedro Castillo's administration. 

"The multiplier effect of public investment on GDP is quite important because we calculate it at 1.5 times," he pointed out.

(END) CNA/MVB

Published: 3/8/2022