Andina

Peru PM: Economy to operate at 100% capacity in Phase 4 of reopening

00:09 | Lima, Jul. 11.

Prime Minister Vicente Zeballos has estimated that the Peruvian economy will be operating at 100% capacity in August with the implementation of Phase 4 of the resumption of economic activities.

"The fourth stage of the resumption of economic activities is expected to be conducted in August to operate at 100% capacity but always putting public health first. If, at some point, the situation makes us take a decision, the health of Peruvians must prevail," he affirmed.

The Cabinet chief regretted the loss of jobs caused by the pandemic, but affirmed the Government is working on measures to stimulate the generation of employment.

The first measure, he explained, constitutes the second stage of the Reactiva Peru Program. "We have approved the second stage of Reactiva Peru and provided a State guarantee to leverage credits for a total of S/30 billion (around US$8.51 billion)," he explained.

In addition, the President of the Council of Ministers said that the Government approved the Business Support Fund for Micro and Small Companies (FAE-Mype), whose original budget amounted to S/300 million (around US$85 million) and, then, and additional S/800 million (around US$227 million) was added.

On the other hand, he referred to the creation of FAE-Tourism and FAE-Agro, whose budgets were S/500 million (about US$141.8 million) and S/2 billion (around US$567 million), respectively.

"It is an injection that we are putting into the economy, which will join the Arranca Peru (Get off the Ground, Peru) Program," he added.

Furthermore, Zeballos disclosed that S/4 billion (about US$1.13 billion) will be allocated to road maintenance works under the supervision of the Ministry of Transport and Communications (MTC) in coordination with sub-national governments.

"We are also working on housing bonds through the Ministry of Housing and the maintenance of classrooms managed by the Ministry of Education," he pointed out.

Economic rebound in 2021

The Prime Minister remarked that —with these actions— the economy will decline in 2020 but by a smaller margin.

"With responsibility, commitment, planning and organization this year, things are going to be corrected. Our expectation is to end the year in negative territory, but by a small margin," he stressed.

In this sense, he projected the economy will grow 7% in 2021.

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Published: 7/11/2020