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MEF: Peru has already lost SGD 2.150 million due to protests

The head of the MEF, Alex Contreras, gave an assessment of the economic losses that the country is recording due to the protests. | Font: AFP

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The protests spawned economic cost of SGD 2.150 million between December 8 and January 23, the Ministry of Economy and Finance (MEF) said.

“There are three regions where the main economic losses are concentrated: Cusco, Madre de Dios and Puno. In terms of the cost of social conflict in terms of economic activity, our latest estimate is S$2,150 million,” Economy Minister Alex Contreras said.

The head of the IEF claims that the regions most economically affected by the protests have S / 0 performance on investments.

“This social conflict hits mainly the most vulnerable segments of the population. The regional governments with the most losses cannot have 0% execution,” he added during a recent press conference.

It should be noted that influence accumulated in December 2022 amounted to 1,000,000,000 S/, but for now in January we add losses of 1,150,000,000 S/.

Another consequence of the protests is rising prices due to supply constraints in the markets, thus a possible increase in inflation for January by 8.5% and 9%, mainly affecting the vulnerable with low incomes.

The IEF notes that families of minors income they allocate 60% of their spending to food consumption and transportation.

Despite this economic impact, Contreras ensures that the country maintains the sustainability of the Peruvian economy.

“Peru’s macroeconomic advantages continue and the Peruvian currency is the most stable in the region. As for inflation, January was a failure, but the trend is downward,” he commented.

Influenced by demonstrations IEF The country is estimated to see just 2% economic growth in the first quarter of the year if the conflict continues. If the consensus is reached, the GDP for the first three months of the year will grow by 3%.

Source: RPP

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