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Fin Min: Peru's economic recovery is a reality, GDP to expand 10% in 2021

Peruvian Economy and Finance Minister Maria Antonieta Alva addresses reporters during a press conference. Photo: TV Capture

13:56 | Lima, Aug. 27.

The Peruvian economy's recovery is already a reality based on production indicators that will favor a GDP growth in the order of 10% in 2021, Economy and Finance Minister Maria Antonieta Alva said on Thursday.

According to the high-ranking official, Peru will experience a rapid recovery next year supported by a 10% expansion —one of the highest in the region, after falling back an estimated 12% in 2020.

The Cabinet member indicated that GDP recovery responds

to the economic reopening, the implemented plan and the efforts of people and companies to move the country forward.

"There is no structural damage in the Peruvian economy. Instead, there is resilience in the economy, which has accompanied us during previous crises," she noted.

In this sense, Alva said that —without an economic plan— the national GDP would fall 20% in 2020.

Likewise, she stated that the economy will continue to recover based on three key factors: the boost to demand, capital stock, as well as to competitiveness and productivity.

Minister Alva also pointed out that two dynamics are witnessed in 2020.

"First came the dynamic of the initial six-month period when quite strict confinement measures were taken, which were the outcome of the Government's policy for preserving the population's health. This definitely had an impact on the economic performance of the first six-month period, which registered a fall of 17.4%," she expressed.

"In the second half, we see another dynamic; it is a recovery driven by primary sectors that will reach levels similar to those registered before the COVID-19 pandemic broke up (...)," she added.

The minister projected that the effect of these two dynamics will be reflected in a 12% GDP decline in 2020, instead of a -20%.

Lastly, she ruled out a tax increase in 2021.

Remarks were made during a virtual press conference.

??Ahora | Inicia conferencia de prensa presidida por la ministra de Economía y Finanzas, María Antonieta Alva, acompañada por los viceministros de Economía, Mario Arróspide, y de Hacienda, José Carlos Chávez.

Sigue en vivo la transmisión: https://t.co/6JCKxqMTzR pic.twitter.com/ikJOF5YwnY
— Ministerio de Economía y Finanzas (@MEF_Peru) August 27, 2020

???‘’Vemos una recuperación rápida de la economía peruana, con un crecimiento en el 2021 de 10%, impulsada por un mayor dinamismo del consumo y de la inversión privada, y un mayor dinamismo del gasto público‘’. pic.twitter.com/RXtA9m4pdA
— Ministerio de Economía y Finanzas (@MEF_Peru) August 27, 2020

(END) CNA/JJN/MVB

Published: 8/27/2020

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Fin Min: Peru's economic recovery is a reality, GDP to expand 10% in 2021

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