The public investment growth rate projected for this year (9% according to the Government) will help alleviate negative shocks from abroad,
Moody's Investors Service Vice-President Jaime Reusche said on Friday.
"The expansion in public investment will help mitigate the negative shocks from abroad. This is why we maintain our GDP growth projection of 3% for this year," he told
Andina news agency.
As for the efforts made by the Economy and Finance Ministry (MEF) to help sub-national governments increase their public spending, he said they are noteworthy, and noted that the 9% goal by the end of the year is achievable.
"Peru's financial authorities are doing their best to make that happen. I am confident this initiative will be rewarded this year," he underlined.
Reusche commented that the country has learned so many lessons from frustration of recent years, in which corruption scandals and political interference undermined what could have been a beneficial public investment agenda for the country.
Competitive advantages
In this regard, Moody's officer affirmed that the execution of public investment has started to get things moving because of two factors.
"The first one is that we have a unique example in the region of how to execute public works transparently and efficiently, thanks to the organization of the Pan American Games and its perfect preparation management, which fill all Peruvians with pride," he noted.
The second factor is that "we have great technocrats at our financial institutions which, with great verve, are combating thickets of red tape, adjustments, entrenched interests, and the complex navigation required to get the State moving."
(END) RGP/JJN/RMB
Published: 2/28/2020