Despite the political crisis, Kurt Burneo is confident in his ability to revive the economy

Latest statements from President Pedro Castillo and Prime Minister Anibal Torresdescribed as incitement have raised many questions about the economic situation in the country and how this might affect investment.

However, for Economy Minister Kurt Burneo the situation will not cause negative consequences because he trusts his leadership to boost the economy through public spending and public investment.

“If public investment slows down,o Spending schedule adhered to As far as what capital spending is, obviously, let’s say the dynamics of the economy will slow down, it will slow down as a direct consequence of the lack of adequate management of what public investment is,” he said.

To do this, he confirmed that he had enough room to make public investments, which would have implications for private investment as they would increase demand and in turn increase GDP.

“Public investment, if it restores dynamism, it means an increase in spending in the economy. and spending is a component of demand and a determinant of GDP. Increasing government spending by increasing public investment leads to higher GDP growth rates, with or without a political challenge,” he said.

What about private investment?

However, the future of private investment, which creates most of the jobs, remained uncertain. At the same time, the minister acknowledged that they have not yet restored the confidence of businessmen, especially since they consider this restoration “more difficult.”

“In this case, through MEF, which is the sector that I’m in charge of, it will depend a little more not on what you say so much, but on what you do in MEF so that they can gradually restore trust. in what corresponds to the MEF sector. I do not comment on other sectors, because this is a separate problem,” he said.

The minister avoided commenting on the president’s fiscal investigations; however, he gave his opinion on the various recorded mobilizations, which he minimized as “they weren’t the first time”.

Promises a proposal to restore the economy

According to the minister himself, a proposal is being prepared to revive the economy in order to stop the decline in the economy, focusing on GDP growth. To do this, he seeks to actively involve all economic agents.

“Economic agents must be aware of what they are trying to do so that there is no misunderstanding, and since the more knowledge, the more confidence, and the more confidence, the response in terms of economic incentives that we are going to consider in the policy proposal,” – he specified.

In press statements, the official did not elaborate on the measures, but stressed the need for increased tax collection. According to him, the specified reactivation will be perceived by all objects. burning.

Although we have repeatedly seen governments request the power of the Legislative Assembly to pass important reforms, the minister ruled out that they should go to Congress to revive the economy.

“I don’t think there will be much need for it. We are still developing, drawing up a plan for revitalizing the economy, which will certainly be brought to your attention in due time. We’ll finish this in a few days.” to express.

Criticism of bonds

According to the minister, it is necessary to improve the targeting of households in order to increase the efficiency of its distribution. “We need to improve the home targeting system. In general, it is necessary to improve the targeting of this type of assistance.because, after all, poor targeting implies that they are not all who are, and not all who are. So we need to focus better,” he said.