have been the main factors for Peruvian economic recovery —after negative months due to social conflicts.
"Conflict had a negative impact in December and January, but the concrete fact is that we observe a significant recovery from February forward," Contreras expressed.
"A key factor in the recovery of our economy has been the rapid implementation of the Con Punche Peru Plan and also the good progress on public investment execution," he added.
During his participation in the
Regional State Council, the Cabinet member stressed that last
April (public) investment by local governments expanded 31.8%, followed by regional governments (above 26%).
"This is the first year in office for all (national, regional, and local governments), but despite all this, for the first time growth in public investment is being observed. The idea is to move forward, with all efforts by the Ministry of Economy and Finance (MEF) and by the sectors to coordinate and continue working on the execution of budgets," Contreras indicated.
"During the first quarter, public investment execution exceeded S/7 billion (over US$1.888 billion); the latest data show that we had exceeded S/10 billion (over US$2.696 billion) until April, and the goal is ambitious, but we have to break with that historical trend of under-execution; we are on the right track, and that is the most important thing," he added.
Expectations
The minister explained that, as a result of the context of social conflict and the negative impacts of weather disasters, business confidence plummeted during the first quarter of 2023.
"What we are seeing now is a quick recovery of companies, as well as of workers, because consumers are starting to feel optimistic," the government official said.
"There are expectations for investments and hirings, which generate dynamic effects throughout the country. I welcome the stance of many governors to coordinate with the MEF, and the goal this year is to visit every region," Contreras added.