Andina

Peru: Private investment might grow at least 3% in 2023 due to legislative powers

Photo: ANDINA/Ricardo Cuba

Photo: ANDINA/Ricardo Cuba

12:35 | Lima, Feb. 24.

Economy and Finance Minister Alex Contreras on Friday affirmed that private investment would grow at least 3% in 2023 given the legislative powers requested from the Congress of the Republic.

In an interview with the Official Gazette El Peruano, the Cabinet member stated that private investment growth was nil in 2022.

"It even decreased. This year, the goal is for private investment to grow at least 3% in real terms," Minister Contreras expressed.

"That is the goal we have set for ourselves and that is why we are requesting the delegation of powers which, in a simple manner, will generate a much more efficient path for projects to advance faster," he said.

According to the Cabinet member, "we are incorporating improvements in (terms of) deadlines, obtaining licenses, and we are going to allow some procedures to run in parallel to reduce time."

"We are enhancing the Public-Private Partnership (PPP) scheme, promoting a new land and interference law, among other issues. To sum up, thanks to the legislative powers, we will generate a fast track for public and private investment," he noted.

Key to growth

The minister affirmed the key to growth will be mining investment recovery and greater acceleration in infrastructure investment growth.

"In this sense, we are going to go out, once again, to summon investors to come (to Peru) and thus boost new growth engines," he pointed out.

Facts

- The Economy and Finance minister affirmed that micro- and small-sized enterprises are the heart of the economic reactivation undertaken by the Government. This is reflected in the support that goes from financing up to State procurement.

- Minister Contreras said the measures to be approved by the Executive Branch, after the delegation of legislative powers, will contribute one percentage point to GDP growth this year.

- Peru's public budget grew fivefold over the last 20 years and now exceeds S/270 billion (over US$70.66 billion). In 2000, the budget was worth around S/50 billion (about US$13.09 billion).

- To date, there are 1,879 stalled public works. From that total, local governments are in charge of 1,335, followed by the national government (351) and regional governments (193). These commit an investment of S/5 billion (about US$1.31 billion).

(END) RGP/DOP/MVB

Published: 2/24/2023