Peru's economy recovers faster than expected, forecast to grow 10% in 2021

12:10 | Lima, Jan. 13.

Economy and Finance Minister Waldo Mendoza affirmed that the Peruvian economy is recovering faster than expected and is forecast to grow 10% this year.

"The most recent indicators of economic activity confirm our conviction on this rapid recovery of the Peruvian economy," he said.

The government official noted that these results come thanks to the fiscal policy measures adopted by the Ministry of Economy and Finance (MEF) and the monetary policy actions taken by the Central Reserve Bank (BCR) to mitigate the impact of the COVID-19 pandemic.

"These policies allowed the productive apparatus to remain almost intact during the pandemic; in such a way that companies were prepared when the economic reopening began, and that is how the Peruvian economy's rapid recovery is explained," he remarked.

"In such a way that a 10% recovery in GDP is expected for this year, which will be followed by interesting growth rates," he added.

Additionally, Mendoza estimated improvements in the performance of private and public investment for this year.

"Private investment —an aspect that is of particular concern to this ministry (MEF), especially after a 20% drop in 2020— is expected to recover by 17% this year," the Cabinet member reported.

He went on to say that public investment —which at some point within last year fell 70%— has already seen an increase in the last three months. In addition, it has registered a double-digit growth in the last months of 2020.

Remarks were made during his participation in the "2021 reactivation measures, including generation of employment and opportunities for Peruvians" session at the Annual Conference of Executives (CADE-Executives).


Published: 1/13/2021
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