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Fin Min: Peru's recovery is vigorous, private investment up 37% in 1Q 2021

14:15 | Lima, Jun. 3.

Economy and Finance Minister Waldo Mendoza on Thursday stressed that private investment expanded 37% during the first quarter of the year over the same period in 2020, adding that Peru's economic recovery is looking vigorous.

"Private investment is doing very well. During this first quarter it has recovered by 37%, and if we compare (the results) with those of 2019, a normal year, this recovery is also very good at 17%," he expressed.

Likewise, the government official pointed out that private investment is growing considerably, taking as a reference the imports of capital goods which last May increased by 100.4%, compared to the same month in 2020.

"With the data on capital goods imports, which is a good approximation to private investment's behavior, what the second quarter's figure will also show is a vigorous recovery," he indicated.

Furthermore, the Cabinet member said Peru is a country that has made most progress, even in these difficult times, and has immense potential to continue doing so, while remaining responsible in fiscal terms.

"I want to describe the features of this vigorous recovery. After falling in the second quarter of 2020, the Peruvian economy is already growing. During this first quarter, in relation to 2020, the economy has grown 3.8%, and compared to 2019, there has been a growth of 0.1%. It is a good figure for Peru," he explained.

"When compared to the neighborhood, that vigorous recovery also looks outstanding in terms of international recovery. We are recovering much faster than the rest. Peru remains a country that is leading the economic recovery," he added.

Public investment

The minister reiterated that another variable —which explains national economic growth— is public investment. It is expanding at high rates and is expected to grow over 20% this year, thus being an important economic driver.

"This government can be proud of the fact that public investment from January to May of this year is the highest in contemporary history, because there is a set of efforts that have been made," Mendoza said.

"Obviously, this recovery has to do with a set of actions and activities, some started by the previous administration and others by the current one, which largely explain the macroeconomic recovery," he added.

Therefore, the Cabinet member believes that there are no major sources of concern regarding the economic behavior this year.

"This year we see it (Peru's economy) grow by 10%. (Central Reserve Governor) Julio Velarde tells us that it is a conservative (figure); they are expecting 10.7%. So, this year, we would recover almost everything we lost last year; that is a very good result for the country, and we expect Peru to continue growing at rates of 4.8% and 4.5%," he concluded.

(END) CNA/JJN/MVB

Published: 6/3/2021

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Fin Min: Peru's recovery is vigorous, private investment up 37% in 1Q 2021

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