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The Peruvian economy will lose 1.195 million salts as a result of Cyclone Yacu, the head of the department said. Ministry of ProductionRaul Perez Reyes.
“Our first calculation is that out of 131 districts, approximately 10,600 affected families, this will affect sales by approximately 1,195 million soles, which is more or less 0.1% of GDP,” he told RPP.
The minister clarified that this amount does not mean what has already been lost, but what will be lost in general influence this whole situation.
“It measures the initial drop and then the adverse feedback effects that will occur in the following weeks. The impact of rain today leads to the loss of production, for example, agricultural production, sales of products, and this leads to the fact that people have no income, do not consume, that consumption also reduces other activities,” he explained.
As Perez Reyes commented, this full effect will be visible over the next three months and will affect mainly two sectors.
“There are 141 thousand companies, of which among business and services There are 140,000 of them, most of the impact is on trade and services, this is an activity that, on the one hand, is sustainable, because as soon as the roads are restored, these activities will recover, but on the other hand, these companies have little capital investment, some types of activities will not fully recover,” he said.
In this situation, the minister indicates that the gross domestic product (GDP) March have a shrinkage of at least 0.1%.
Perez Reyes added that these losses could be higher given that rains, floods and landslides continue to affect various regions.
The Minister assured that the Government is ready to respond to a possible El Niño phenomenonbut acknowledged that the state stopped intervening in disaster prevention many years ago.
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.