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Natural disasters and conflicts resulted in losses of SGD 7 billion.

By the end of 2023, private investment growth will reach 0.5%. | Fountain: Andean

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During the presentation of the Macroeconomic Forecasts Report, where growth expectations were changed from 3.1% to 2.5%, Minister of Economy and Finance spoke in detail about the impact of recent social and climate events in the country.

According to the official, the losses incurred social conflicts natural disasters caused economic damage in the amount of 7 billion soles. He added that social problems affect economic growth.

“In a low growth scenario, the economy is not divorced from politics. The conflict affects the GDP,” he said of the clashes that began in December last year after the coup attempt by former President Pedro Castillo.

short stature

Because of these problems, Peru’s growth has been minimal, and in this scenario, “it is difficult to maintain optimistic growth expectations,” the head of the MEF added.

Thus, expectations have been changed, and Peru will grow by only 2.5% by the end of this year, and in the case of private investment it will rise to 0.5%; However, according to the measurement figures, the official said, the outlook will improve in the coming months.

“We expect a significant recovery in the third and fourth quarters of this year,” he said.

informality

Low growth jeopardizes the creation of more formal jobs, a metric that reduces or increases poverty; For this reason, Alex Contreras stated that “reducing informality will be a priority”. Remember that this problem affects 8 out of 10 Peruvians.

Source: RPP

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