Economy and Finance Minister Alex Contreras on Tuesday affirmed that the Peruvian economy is expected to recover in the third and fourth quarters of this year after being affected in May by the shock to the primary sector, including fishery and farming sub-sectors.
These shocks subtracted two percentage points from GDP growth last May.
"We are emerging from very specific high-impact shocks," Contreras said in a live broadcast on the Economy and Finance Ministry's digital platform.
Likewise, the government official underscored that the Peruvian economy was negatively impacted by social conflicts in the first months of the year.
In April, the country's gross domestic product (GDP) saw
a slight recovery (0.3%), but then, it was affected again by adverse weather conditions, as a consequence of
El Niño phenomenon.
In said month, El Niño reduced planting areas, and there was no anchovy fishing season, which reduced the industrial production of fishmeal and fish oil.
Nevertheless, the Cabinet member indicated that the Peruvian economy is expected to recover, with a revival expected in the third and fourth quarters of this year.
"Public investment execution will contribute to the demand. We expect a big boost from public investment in the following months and a recovery of private investment, which is the main engine of the economy," he said.
The minister explained that, in June, the physical progress of public works was positive, capital imports were on the rise, and the fall in the consumption of cement stopped.
On the other hand, the Economy and Finance sector's head highlighted the restoration of confidence among investors.
(END) NDP/RMB/MVB
Published: 7/18/2023