projected that Peru's economy could grow by up to 4% by the end of this year despite Coastal El Niño and its negative impact.
"We could grow by 3.5% or perhaps 4% this year," he said last night on Latina Television's Punto Final program.
In this regard, the government official mentioned that Coastal El Niño is already occurring and is having a negative impact on gross domestic product (GDP).
Likewise, the Cabinet member noted that although fishing and exports will be affected by El Niño, these sectors will perform much better next year.
"Peru could grow more next year than in 2026," Cuba emphasized.
Informal mining
Regarding informal mining, the minister said the MEF will work closely on the MAPE Law (for small-scale and artisanal mining).
"It is not within my area, but we do have to provide an opinion, from a technical standpoint, on how to design it so that it achieves a successful outcome and provide technical support," he stated.
Moreover, the Cabinet member commented that the Fiscal Council has been highly critical of the previous Congress but has not made any reference to the current administration.
"They have not said anything yet (about our proposal to review the fiscal rule). They will surely give their opinion very soon, and I do not think it will be against it," he remarked.
Commitments
The minister stated that his administration's commitment for the next five years is to achieve a 6% economic growth rate, lower labor informality to 50%, and reduce poverty to 15%.
"These figures are the guiding targets of this administration. We have already made a good start because this year, if there had been no El Niño, the economy would be growing between 4% and 5%," he said.
The Cabinet member explained that the targets set for reducing labor informality and poverty will only be achievable if the desired growth rate is reached.
"It is impossible to reduce informality to 50% or lower poverty to 15% if we maintain the modest growth rates we have experienced over the past 10 years, which are below global growth. That is not what corresponds to a developing country," he indicated.
Fiscal rule
Regarding the announcement of adjustments to Peru's fiscal rule, the minister specified that the changes would be mainly related to the fiscal deficit and public debt.
"We believe that it is necessary to review the rules from time to time. This happens in all countries; they are not set in stone forever. In principle, the aim remains to maintain fiscal solvency and pursue countercyclical policies, but it is now a more technical matter," Cuba stated.
The economist mentioned that the 1% fiscal deficit limit, which has been part of Peruvian law for 20 years, has almost never been met.
"So, if it is never met and we have fiscal solvency, there is a problem. We are considering revising it to 1.2%, that is, from 1% to 1.2% by the end of this Government. These are more technical matters, but they in no way jeopardize fiscal solvency," he pointed out.
(END) SDD/MVB