Andina

Peru's economist: Statements by Economy minister generate calm among economic agents

14:02 | Lima, Aug. 6.

Economist Jorge Gonzalez Izquierdo on Friday affirmed that the first statements by Peru's new Economy-Finance Minister Pedro Francke generate calm among national and foreign economic agents.

"This is because he has made clear that the fundamental principles of a market economy will be respected, such as the right to property, the right to savings, and that there will be no exchange or price controls," he told Andina news agency.

Likewise, the economist projected that responsible conduct in the fiscal aspect will be adopted.

"These are statements that bring some peace of mind to economic agents. Yet it is necessary to oversee compliance as time passes," he indicated.
 
Tax collection

Regarding Minister Francke's statements in which he points out that tax collection has been evolving in a favorable manner and that there is fiscal space to implement the projects announced by President Pedro Castillo, Gonzalez Izquierdo commented that this fiscal space exists.

"There is currently fiscal space to craft a policy that brings relief to various economic sectors in the country. There is room to give the S/700 (about US$171) bonus (government grant to each vulnerable family hit by COVID-19), but the important thing is that this help be absolutely focused on those who really need it," he explained.

The economist added that this fiscal space comes from the important increases in tax collection, because mining companies are mainly registering increased profits due to high prices of minerals around the world.

"That helps a lot to create a fiscal space," he remarked.

Priority vaccination

Concerning the fact of declaring the vaccination process a priority issue, the university professor said that if it is necessary to spend, this should be done especially in health, education, and infrastructure sectors.

"Obviously, without falling into overspending," he concluded.

(END) SDD/MVB

Published: 8/6/2021