Andina

Peru's PM: Public investment to grow 20% in 2H 2020

ANDINA/Difusión

15:15 | Lima, Aug. 11.

Peruvian Prime Minister Walter Martos on Tuesday affirmed that the Government aims to increase public investment by 20% in the second half of 2020 and by 10% in 2021.

"Our main objective is for the execution of public investment to increase 20% in the second half of this year and to grow at least 10% in 2021," he expressed.

"To do so, we expect to invest about S/20 billion (about US$5.616 billion) in the remainder of the year and S/35 billion (about US$9.828 billion) in 2021, those amounts will generate a positive impact on the recovery of our economy," he added.

The Cabinet chief argued that public investment is the main tool to boost the closing of gaps in the country, adding that —in the short term— it plays an important role in the economic reactivation.

"(…) it generates chain effects, energizes multiple economic sectors, boosts employment and also favors private investment," he said.

"So far this year, as a result of the pandemic, public investment has accumulated a 35% decline. This comes despite the fact that —in the first two months of the year— this variable reached historically high levels. Therefore, and thinking about the reactivation, we will implement concrete measures to reverse the negative trend."

Reactivation

Likewise, the high-ranking official indicated that the reactivation has two sides, the economic and the social one.

According to the Cabinet chief, "the economic reactivation is already underway, proof of that are the leading GDP and employment indicators, which show that the Peruvian economy is recovering rapidly and significantly."

"Although GDP and employment are still below pre-crisis levels, the Government's objective is to strengthen the recovery process of our economy in the coming months, creating the conditions for a rapid recovery," he stated.

Economic plan

Martos recalled that —as part of the economic plan to face the crisis— between March and August a set of measures was approved for S/128 billion (about US$35.945 billion), equivalent to 18.1% of GDP.


In accordance with Article 130 of the Constitution, the President of the Council of Ministers must attend Congress —joined by his Cabinet— to present the Government's general policy and the principal measures pursued by the Executive Branch.


(END) CNA/JJN/MVB

Published: 8/11/2020
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