President Sagasti: Peru's economy to expand 10% in 2021

15:03 | Silicon Valley (U.S.), Jul. 8.

The President of the Republic Francisco Sagasti on Thursday projected that Peruvian economy will rise 10% this year, recovering from the 11.1% drop experienced in 2020 within the framework of the COVID-19 pandemic.

"According to projections, the global economy will rise from 3% to 4%, perhaps up to 5%; ours in Peru will probably grow 10% to make up for lost time," he expressed.

The Head of State explained that there is a rebound in the economy, which this year would grow —on average— more compared to 2020.

"Last year was a year of economic disaster for the whole world," Mr. Sagasti recalled.

However, the dynamization of activities on a global scale generates a greater demand for fuel. This has prompted an increase in the price of oil, which —in the end— affects prices in Peru, he warned.

Likewise, the top official pointed out that the price of an oil barrel currently reaches US$75 from the US$55 to US$60 registered a few months ago, and the US$45 more than a year ago.

"By raising the price of fuels, which is not under our control, the prices of the production chain and services that use oil rise (...) within the limitations of resources that our government has; we have already taken a first step to cushion the effect of this vertiginous increase in the price of oil," he explained.

Published: 7/8/2021