Andina

Fin Min: Coronavirus impact on Peru economy to be limited, GDP to continue growing

14:54 | Lima, Mar. 4.

Peru's economic growth will be one of the highest in the region in 2020 —basically underpinned by domestic demand— within a framework in which the coronavirus (COVID-19) impact on productive activities will be limited, Economy and Finance Minister Maria Antonieta Alva projected on Wednesday.

During a press conference, the government official pointed out that coronavirus is a new source of uncertainty in the world. Thus, G7 countries and others are already implementing the corresponding fiscal and monetary policies.

In this sense, the minister indicated that Peru relies on a great macroeconomic strength —which is recognized abroad— along with a dynamic budget execution.

"Thanks to the strength of our economy and the measures we are taking, in terms of fiscal impulse, we believe that the impact will be limited on Peruvian economy. Anyway, we are evaluating various risk scenarios that will materialize on March 31, once we publish the macroeconomic projections report," she expressed.

Minister Alva noted that the strength of Peru's macroeconomic fundamentals will allow the country to properly face those external shocks.


GDP will continue to grow

Likewise, the Ministry head commented that the fiscal impulse will be one of the pillars to sustain Peru's economic growth this year.

"We want to highlight the efforts we are making to execute public investment (…)," she said.


"With respect to last year, we have additionally injected more than S/1 billion (above US$289.85 million) into the economy. This is an effort made by the three levels of government," she concluded.

Remarks were made following a Council of Ministers session in Lima.


(END) VLA/JJN/MVB

Published: 3/4/2020