Peru's economy entered recovery stage in Feb 2023

Photo: ANDINA/Norman Córdova

14:59 | Lima, Feb. 28.

Economy-Finance Minister Alex Contreras on Tuesday said that "Peru is back again," as there is international and local interest in the South American country.

The Cabinet member pointed out that the slowdown is starting to moderate, adding that there are already indicators which prove that Peruvian economy is once again entering a recovery stage.

The role of world economy is key to local dynamics, said the Economy-Finance Ministry's head at the "Promoviendo la inversión para dinamizar la economía" (Promoting investment to boost the economy) event organized by Peru's Private Investment Promotion Agency (ProInversion).

"Inflation is starting to moderate in every region of the world, and this is being observed in Peru, which helps because it makes the severely-contractive monetary policy start to moderate or, at least, begin to reduce the pace of adjustment, a situation that is being observed," Contreras explained.

The most severe interest rate adjustment was faced during these two years. In the case of the United States, said rate adjustment will continue to moderate in the following months, the economist forecast.

China once again begins to show recovery signs. Metal prices are also observed above the levels projected in the macroeconomic framework. So, the conditions are not entirely negative and could be favorable, among others, he noted.

In the case of Latin America, the context will be challenging and the MEF bets on growth above 3.1% for 2023, he indicated.

Confidence

Within this framework, the MEF is trying to restore trust, credibility, coordination with private companies and to encourage them to invest, the high-ranking official said.

"Peru is back again; there is international and local interest, and restoring confidence ties is what is sought," he noted.

The impact of the social conflict has been strong and limited in regional and sectoral terms, plus the economy has advanced at two paces: one that recovered and grew fast, including primary sectors, and non-primary sectors affected by social conflict, which will have a significant impact in January (results), the Cabinet member mentioned.

"So, concerning January, we expect a moderation; and starting February what the indicators show is that the economy is already entering the recovery stage," he said.

In this sense, exports are recovering again. Investment indicators also show that (trend). In the case of the National Government, the main tools are public consumption and public investment, which have been advancing at good pace, he pointed out.

?? Ahora | El ministro de Economía y Finanzas, @AlexContreras_M, participa en foro, organizado por @ProInversionPe, “Promoviendo la inversión para dinamizar la economía: Perú 2023 - 2024”.
??Mira la transmisión en directo: https://t.co/BhiCrUPhdh pic.twitter.com/X6Gt9knrRd
— Ministerio de Economía y Finanzas (@MEF_Peru) February 28, 2023

(END) MMG/MVB

Published: 2/28/2023

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Peru's economy entered recovery stage in Feb 2023

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