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Forecasts for this year show that the Peruvian economy will grow by 2-3%, but private investment expectations are still much lower.
At the end of last year the company Central Reserve Bank (BCR) You have calculated that private investment has a growth of only 1%, what are the forecasts now, after more than a month of protests and blockades?
Study Peruvian Institute of Economics (IPE) calculated that private investment could fall 2.8% by the end of 2023.
As indicated, these forecasts are given taking into account the political uncertainty scenario of a possible Constituent Assembly and the impact on the economy as a result of social protests.
Deteriorating external conditions will support business expectations in the pessimistic tranche during 2023
IPE CEO Diego Masera notes that business confidence is currently quite depressed: “What we’re seeing today is a consequence of what happened to confidence last year.”
He added that the sector sensitive to uncertainty is private investment, which will fall by 15-16% in 2023.
“This is a year in which mining investment will be unprofitable due to the completion of Quellaveco, which has injected nearly $1,000 million into the economy in recent years. investments. This has already culminated in the second half of last year, and there is no equivalent project that could fill this gap,” he said.
Overall, this reduction in private investment will prevent the creation of about 20,000 formal jobs, nearly a fifth of the formal jobs created on average in the four years before the pandemic.
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.