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MEF: Regions hardest hit by protests account for 25% of GDP

The calculated impact does not take into account losses due to damaged infrastructure. | Fountain: AFP

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The Peruvian economy is losing between S/60 million and S/100 million daily due to protests that began at the height of the political crisis, according to estimates from the Ministry of Economy and Finance (IEF).

Speaking to the Gestión newspaper, MEF head Alex Contreras indicated that this estimated economic impact would only be on gross domestic product (GDP).

“This is only the impact of GDP. It does not include the impact of losses caused by infrastructure Damaged, which should have an estimate. The central estimate is SGD 80 million,” he told local media.

Contreras claims that this figure includes industry losses in transportation, trade and tourism, as well as products that are lost because they cannot be transported.

“Behind this is wage tips that cannot be paid, tips that arrive late; small businesses or wineries that will not be able to repay their debts. It happens everywhere. Here, around the MEF, the commercial movement has decreased because of the protests,” he said.

The minister added that this influence is greater in regions where there is a large escalation of protests, “these regions represent 25% of GDP.”

In this situation, the growth forecast economy countries may be slightly lower than expected.

“Our estimate is between 2.7% and 3%. The latter figure is between 2.8% and 2.9% for 2022. There may be some impact (from the protests), but we are working with the interior and defense ministries to make sure that doesn’t happen. scale more,” he said.

Contreras added that by 2023, the MEF expects the country’s growth to be between 3.1% and 3.9%, and this figure is expected to be achieved through the measures proposed in the Impulso Peru plan.

Source: RPP

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