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economy According to the Central Reserve Bank (BCR), Peru will continue to face the consequences in the coming months due to the shutdowns caused by the protests.
Only for the lowest incomes tourists Peru is estimated to lose US$600 million in the first half of the year, but this is not the only negative shock.
BCR Central Economic Research Manager Adrian Armas points out that there is a greater decline in confidence scores in the southern regions.
“In assessing the indicators of regional business confidence, the most deterioration is observed in the southern zone, but this is not only the south, this is the whole country,” he says.
This deterioration not only affects potential GDP economy but also “reflects a drop in business performance and results in less investment and less spending.”
Despite what is being observed, Armas notes that it is premature to indicate the overall impact that the conflict will have, but there are signs of a slowdown in the southern zone and in sales.
“It is premature to analyze because the ultimate impact is related to the duration of the conflicts. If conflicts, blockades, interruptions stop, this will give the economy the opportunity to restore the impact that these shocks have before the end of the year. If they are long, it will be very difficult for companies to restore production,” he added.
At the moment, preliminary data show that the regions of Cusco and Puno experienced a sharp drop in sales in January.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.