The Government's plan, which includes the
Reactiva Peru program, will allow a rapid economic recovery in the country starting in the third quarter of the year,
Economy and Finance Ministry (MEF) reported on Tuesday.
"Obviously, this plan will be a very important tool to guarantee rapid convergence in the country's potential growth. We are convinced that a rapid recovery will be generated from the third and fourth quarters," said Alex Contreras, Director General of Macroeconomic Policy and Fiscal Decentralization of MEF.
At this point, there is a lot of uncertainty about what will happen in other countries and around the results of the health strategy adopted by the Peruvian Government.
"What we do see —through the leading indicators— is a moderate economic activity in March and April, but the final result of the year will depend on the health strategy's success and, thus, the activity in some sectors may resume and the economy will be able to converge to its potential growth in the shortest term," he stated.
Increased interest in debt instruments
On the other hand, Public Treasury Director General at Peru's Economy and Finance Ministry Jose Olivares underscored that despite the volatile conditions currently present in local and international markets, the interest in debt instruments —issued by the Government— has increased.
"Despite the current situation, it is very gratifying to see that there is an international demand for debt instruments issued by the Peruvian Government. I have received many requests for said instruments from investors, especially non-residents, during the last two or three weeks," he expressed.
These 12 GDP points represent around S/25 billion (about US$7.27 billion), the largest stimulus package in Latin America to face the pandemic, according to economic analysts.
Published: 4/7/2020