CADE 2022: Emergency in Peru?

private investment it is one of the most influential engines of the economy, as it accounts for 80% of all funding that is carried out in the country; however, its growth was zero in the first half of this year, according to Central Reserve Bank.

An injection of private capital is needed to create jobs, especially in a situation where every second Peruvian does not know if he will eat tomorrow due to lack of resources and 7 out of ten go to the fair at the end of the month.

This scenario develops CADE Leaders 2022 and this year’s motto “Peru in an emergency, Peruvians in action”to represent low stature, explained Felipe Valencia Dongo, president of the 60th edition.

Political noise has hit the efficiency of private investment

“With the CADE Executives 60 editions, we aim to create three feelings: a sense of urgency, a sense of togetherness, and a sense of action; For this reason, our motto this year is: “Peru in an emergency, Peruvians in action.” This motto directly says that we are in an emergency situation and that we need to act together, unitedly, to get out of it.”

CADE Executives will take place November 8-10 in the city of Paracas in the Ica region, where a $3 million economic move is expected. The event will serve as an analysis economic indicators of the country and development challenges after two years of the pandemic.

For the National Society of Industry (SNI), the country’s development is slower, and if no action is taken, next year’s growth will barely reach 0.5%. Jesús Salazar Nishi, the president of this union, saw the political uproar and other problems associated with the presidential administration as a threat to country investments.

“Private investment will close at or very close to 0% due to the political crisis, the rotation of ministers and the uncertainty caused by the lack of a clear time horizon. We businessmen feel that there is no medium or long term vision, we do not know where the country is leading and what kind of policy we could have in increase supported,” he explained.

Clearer policy and less uncertainty

Until now, in the government of President Pedro Castillo, business associations have demanded some measures, such as: the elimination of outsourcing, an increase in the minimum wage, and others. According to former Economy Minister David Tuesta, these measures weaken the economic model that has allowed us to operate on autopilot all along. To solve this problem, he proposes to create trust in businessmen about the stability of the country.

“It is necessary to protect the stability created by the economic model, and for this it is necessary to present a lot of evidence; i.e. see stable policies. This means conveying to the private investor that property rights are being respected, and we assure him that the government will not allow mismanagement that will lead to the loss of money by small, medium and large investors, ”he said.

The challenge is to encourage private investment to create jobs and employ 300,000 young people this year alone; In addition, improve family incomes, for this we need to grow above 5%, but forecasts do not exceed 3%, in fact World Bank expects 2.2% growth by the end of 2022. If private investment continues to fall, for every percentage point that does not rise, more than 12,000 jobs will not be created.