stated that Peru has been the fastest-growing country in South America so far in the 21st century, a performance that—he noted—has been made possible by the macroeconomic stability maintained over the past few decades.
"If you look at this century, we are the country that has grown the most in South America (...) The Dominican Republic, which used to be a poorer country, is now richer than we are simply because it has posted stronger growth since 2014. Even so, we have not fared so badly," he said.
Remarks were made during a ceremony marking the 205th anniversary of the Declaration of National Independence, held recently at the Lima Metropolitan Municipality (MML) headquarters.
Velarde highlighted that one of the pillars of said performance has been price stability achieved through the BCR's work.
"We have had the lowest inflation in Latin America this century. We have even experienced the longest period of low inflation in the country over the past 50 years," he pointed out.
Likewise, the BCR head said macroeconomic stability has enabled the country to withstand the effects of the political instability seen in recent years.
However, he considered that this situation has limited stronger economic growth.
On foreign trade, the expert recalled that in 2000 Argentina exported four times as much as Peru, while Colombia's exports were nearly 80% higher than Peru's.
Yet, the BCR head stressed that last year Peru exported more than Argentina and more than twice as much as Colombia.
Furthermore, he highlighted that Peruvian exports have increased thirteenfold so far this century.
The BCR governor noted that short-term indicators continue to show favorable performance, driven by high export prices.
In that regard, Velarde indicated that the trade surplus reached US$40 billion in May and estimated that it would soon reach US$50 billion.
He also underscored that value-added tax (VAT) revenue is growing at double-digit rates, capital goods imports are up 27%, and private-sector employment has increased by 5.1%.
Nevertheless, the BCR governor warned that El Niño phenomenon is already affecting economic activity, particularly in the fishing and agriculture sectors.
He explained that although the economy grew 3.6% between January and April, growth slowed to 1.8% in May due to a decline in the fishing sector and weaker performance in agriculture.
"The outlook is very positive, but there is a major challenge that will hit us: El Niño phenomenon, and we must be aware of that. The figures we see in the coming months may not be as strong, but that will be the result of a natural phenomenon that is already affecting us," he indicated.
Velarde received the Order of Merit in the Grade of Grand Cross on Wednesday in recognition of his outstanding leadership at the Central Reserve Bank (BCR) over nearly 20 consecutive years.
(END) GDS/MVB