Peru: Public investment to be vital engine for economic revival

13:59 | Lima, May. 1.

Economy and Finance Minister Waldo Mendoza on Saturday affirmed that public investment would become a very important engine for Peru's economic reactivation, as it will grow more than 20% this year.

"Public investment has two characteristics that other spending components lack. On the one hand, it generates demand because people working on these projects require plenty of raw material, and such demand contributes to the reactivation," the minister said in statements to RPP radio and TV station.

"On the other hand, public investment denotes productive capacity, since every road that is built is a road that will remain, and has a direct impact on the increase in productive capacity of a region's economy," he added.

The government official noted that there is no resource limit to invest in public infrastructure in Peru for a long time.

"That's good news. We have always invested less than what is budgeted. This year —thanks to the work of my predecessor (Maria Antonieta Alva) and the work we have been doing— the main bottlenecks have been broken for public investment to take off," he emphasized.

According to Mendoza, this was possible thanks to the implementation of several tasks. 

"One of them is the close coordination between Economy and Finance Ministry (MEF) technical teams, as well as mayors and governors who are in charge of large investment projects," he stated.

The minister affirmed that this year's budget amounts to S/40 billion (about US$10.5 billion), the highest amount in the history of Peru, in such a way that public investment this year will grow above 20% in real terms.


Published: 5/1/2021
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