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Fin Min: Credit growth in midst of crisis is expression of Peru's economic success

11:33 | Lima, May. 19.

Economy and Finance Minister Waldo Mendoza on Wednesday highlighted Peru's macroeconomic response to the coronavirus pandemic, adding that credit growth in the midst of the COVID-19 crisis is an expression of Peruvian economic success.

"The most credible proof of Peru's economic success is the macroeconomic policy response that my predecessor Maria Antonieta Alva and Central Reserve Bank Governor Julio Velarde launched last year, with 10% of gross domestic product (GDP) in credits with State endorsement," Mendoza expressed.

"The rate of credit to the private sector in normal times was at 6% to 7% per year, and (thanks to the macroeconomic response) it climbed to 18% per year, something unprecedented in previous crises," he added.

Likewise, the official affirmed that government support to grant credits to the private sector remains in force.

"This Transition and Emergency Government has rescheduled these credits with State guarantee. Thus, that element of notable growth of credit to the private sector in the midst of crisis is an expression of Peru's economic success," he remarked.

New engines

On the other hand, the minister said that it is impossible to make a leap in Peru's economic growth without the generation of new engines.

"We already know how to grow, keep inflation stable and public finances healthy, but we have been (relying) on the same economic growth engines for a long time, and it is impossible to take a leap without new engines," Mendoza indicated.

"When you look at Peruvian history, we do not know if planned, or by chance, the new economic growth engines have not emerged from cross-cutting policies linked to institutions, human capital, education or health," he added.

The Cabinet member explained that there are economic activities which were successful due to sectoral policies, such as the cases of mining and agro-exports.

(END) CNA/MVB

Published: 5/19/2021
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