Fin Min: A vigorous recovery of Peru's economy is expected in 2021

Photo: ANDINA/Ministry of Economy and Finance of Peru

Photo: ANDINA/Ministry of Economy and Finance of Peru

11:49 | Lima, Jan. 29.

Economy and Finance Minister Waldo Mendoza on Friday affirmed that the Peruvian economy would experience a vigorous recovery this year, becoming the one to recover at the fastest pace in Latin America, and considering that growth projection stands at 10% for 2021.

"We hope that the recovery from this crisis will be faster than from previous ones, in such a way that a vigorous recovery of the Peruvian economy is expected this year (…)," he expressed.

According to the Cabinet member, "the most obvious risk is that of the (COVID-19) pandemic, which forces us to take measures that lower the mobility of the population and have an impact on the level of the economic activity."

"There is a dilemma between health and the economy, and in the current circumstances the health issue matters the most; that is why these measures had to be taken with the expectation of controlling the pandemic and then recovering quickly," he added.

During the Forum "CADEx-Peru Competes in 2021: Boosting competitiveness to achieve better opportunities for all," the Cabinet member said the only element that kills the dichotomy between 
health and economy is the COVID-19 vaccine, which benefits both of them.

"The vaccine is the most important policy instrument for the economic recovery; we are working hard on it, and I am sure there will be good news in the immediate future," he remarked.

Furthermore, Minister Mendoza acknowledged that the other threat to economic recovery is composed of legislative initiatives which are hindering the "rebirth of private investment."

"Fortunately, the soundness of the Peruvian economy has not been substantially affected by the crisis; international reserves of the Central Reserve Bank remain at their original level; the Government continues to have the strength that allows it to issue debt at low rates, and fiscal outlooks are on the path that has been set, with a public debt (level) that must be reduced in the coming years," he added.


Published: 1/29/2021