message to the nation for the National Holidays of the President of the Republic, Pedro Castillo, included the economic balance of the measures taken in the first year of his tenure.
In this line Jose Carlos Saavedrapartner and chief economist at Advisory supportpointed out that the president’s speech is divorced from reality and from the most pressing problems hidden for citizens.
“For example, in the formal labor market, where there are indeed good improvements, but those 70% or more in the informal market are experiencing a crisis and there are zero comments on this. Total detachment from them and micro and small companies,” he said in a RPP News.
As for Saavedra, the president used the BCR economic growth data “to see a different reality” in the present, as it is important to observe economic growth from when the presidential government began.
“If we compare the level of GDP today with how his government started, growth is zero. If we compare the change in GDP in the mining sector, we can see that the fall is 15%,” Saavedra described.
“Real wages remain at 15% below pre-pandemic levels, and this reflects the discomfort of the population. Zero comments and zero mention of a policy that solves this problem,” he added.
Peruvian economy
In this line Ana Reategui, professor of economics and finance at Esan Graduate School of Businessnoted that there are a number of poorly designed policies in the interest of the Peruvian economy.
He said the big absence from the President’s speech, in economic matters, was to know what are the great growth engines of the economy in 2023. “This year is already lost because the balance of what happened does not allow for a decision. be made about what will happen,” he explained.
“Today’s message is a chronicle of a predicted death that nothing will happen,” he added. Reategiwhich raised the search for better employment for the benefit of the population.
At the same time, he argued that the government should identify the engines that will spur the economy next year.
“Today we have this investment and a hundred people who have jobs, but if the same investment continues next year, how many people will have jobs? So many people,” he said.
Attraction panorama in Peru
About attracting the international market to the Peruvian, Saavedra noted that it was influenced by three key factors: inflation, job insecurity and lack of policies to meet current conditions.
“It is true that part of the labor market has improved, but this is not enough to absorb the entire number of people who entered the labor market over the past two years, and this has led to a decrease in real wages,” he said. . . .
He believed that there was no specific vision and that the amount of messages he gave discouraged hiring. “The real picture is that precarious informal employment with low wages and low productivity has grown. This implies a fall in real wages and reflects that a larger percentage of the population is insecure because, being informal, you are not insured. or arbitrariness in the labor market,” he added.
Peruvian booty
Reatagi He pointed out that mining is under an ideological standpoint from the government, leading to it not being seen as the main engine of the economy.
– From this point of view, you create obstacles for him, because you allow yourself to be carried away by other interests, far from economic. When we talk about agricultural exports, you don’t see that there is also that economic point of view. , said the teacher.
He added that the capitals arriving in Peru and settled in different regions of the country (Chiclayo, Piura, Trujillo, Ica or Arequipa) are looking for other countries to diversify.
In this regard, he mentioned that the problem lies in “unstable signals that do not allow decisions to be made” in the interests of the economy.
For his part, economist Saavedra noted that the mining sector has become one of the most affected due to social conflicts and increased tax burden.
“Despite the blows of abandonment, thanks to the extraction Peruvian economy maintained for the first year government With metal pricetreasury amount government sector It was impressive. Even in the mining and agri-export sectors in general, they have been the main actors in the creation of formal jobs,” the government said. economist.
He criticized the rise in metal prices in booty such as copper, and that this will have implications in the future.
“When the price of copper rises, investment in the mining industry increases. This will affect our production capacity in the coming years. We have lost a great opportunity in this area,” he said.
Saavadera noted that they made an economic forecast 2.6% next year, when “the bias is down because of all these negative signs of the business environment.”
Reategui added that the drop in metal prices will be felt in the last quarter of the year and will slow down investment expectations.
OUR PODCASTS:
– “Reports of the RPP”: Social conflicts in Peru.
The complexity of the cases, the large number of actors, the lack of a problem-solving policy and political reform make it difficult to resolve social conflicts in Peru, an issue that is always waiting to be resolved. Laura Urbina explains this in the following report.
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.