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The Ministry of Economy and Finance (MEF) predicts that in the first three months of the year Peruvian economy it would have risen by just 0.5%, given the recent problems that economic activity has faced.
During his speech before the Congressional Budget Committee, MEF head Alex Contreras said the growth estimate for the first quarter of 2023 was cut by three percentage points.
“In December, we expected an average growth of 3.5% in the first quarter, now that the forecast has changed, it is about 0.5%, which is 3 points of GDP that were lost as a result of social conflictContreras said.
It is worth noting that recently the Central Reserve Bank (CRB) also gave a forecast for the economic growth that they will have in the first three months of the year.
For BCR President Julio Velarde, growth in this first quarter will be 0% as a result of protests and heavy rains.
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To finance the higher costs that allow economic recovery and the application of measures related to the El Niño phenomenon, the Minister supported the need for an additional loan of more than SGD 8 billion.
This project, presented to the Budget Committee, proposes to allocate more than SGD 5,700 million for contingency reserve MEF, which currently has the lowest rate in 40 years.
“The contingency reserve is currently at its lowest level in 40 years, at S$612m, we started at S$2,400m, in 2021 we started at S$7,700m, in 2022 at S$6 373 million Singapore dollars, and this year it is the lowest. What we used to deal with the emergency. This reallocation has a limit, so more resources need to be poured into the contingency reserve. We are now in an emergency situation,” he explained.
Conteras added that the project is divided into 3 main axes: reactivation of the family, regional and sectoral economy.
In the case of the former, he pointed to the need to increase resources for the “Glass of Milk” program, the purchase of family baskets, temporary employment, social housing, food for the vulnerable population, gas massification and others.
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.