Fin Min: Peru's economy may resume growth at end-2020 or early 2021

Photo: ANDINA/Congress of the Republic

Photo: ANDINA/Congress of the Republic

15:47 | Lima, Nov. 26.

Economy and Finance Minister Waldo Mendoza on Thursday affirmed that Peruvian GDP is expected to experience positive growth by the end of 2020 or early 2021.

"The good news is that the dramatic falls (of the Peruvian economy in April and May) are getting smaller; we hope that in the following months these falls will continue disappearing and that —by the end of this year or the beginning of the next one— we will observe positive economic growth rates," he expressed.

During a Congress' plenary session, the high-ranking official said the projections suggest that Peru's GDP will recover more quickly compared to the rest of countries in the region.

"In recent months, the recovery has been faster than in other countries around the world. We had a very bad first quarter, a less bad second one, and Peruvian GDP is projected to fall 12% (in 2020). However, the outlook is that Peru will recover a little faster than the rest of countries," he indicated.

According to the National Institute of Statistics and Informatics (INEI), Peru's economy grew in January (3.01%) and February (3.73%). Nonetheless, it fell in March (-16.25%), April (-39.19%), May (-32.31%), June (-17.85 %), July (-11.63%), August (-9.71%), and September (-6.95%), which reflects that the national production continues in a recovery process every month.

Moreover, the minister indicated that Peruvian GDP reaches approximately US$220 billion, adding that it is apparently a large number. Yet, it is only 0.3% of world's GDP.

"In other words, we are tiny, but in addition to being small, we are open (to the global economy), which means that international circumstances affect us very strongly. There are many studies claiming that our economy does not have to do with what we ourselves do, but rather with what happens around the world," he added.


Published: 11/26/2020
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