LIMA, Dec 27 (NNN-ANDINA) — Economy and Finance Minister Alex Contreras on Tuesday predicted that the Peruvian economy will witness growth in the first quarter of 2024 and will see an acceleration in the pace of expansion in the subsequent quarters.
At a press conference held to give an overview of the prevention actions carried out in response to the occurrence of El Niño phenomenon, the minister confirmed his 3% growth projection for next year.
“The economic growth forecast for Peru in 2024 remains at 3%. This forecast coincides with that of the Central Reserve Bank (BCR),” the government official stated.
“Growth will occur mainly in the second half of the year, with a positive first quarter whose growth will accelerate throughout the year,” he added.
Moreover, the Cabinet member noted that private investment is gradually recovering in Peru, after having fallen around 12% in the first quarter of the year.
“We have observed a gradual recovery of private investment throughout the year. After having fallen around 12% in the first quarter, it has been recovering, and we expect a greater recovery for 2024,” he said.
In this regard, he pointed out that the progress in unblocking mining projects is one of the factors contributing to the recovery of private investment.
“Mining investment is essential to give a boost to private investment,” Contreras affirmed.
For 2023, Contreras reported that the public investment figure will grow this year, driven by the greater effort and execution capacity of national and regional governments.
This expansion would mark the third year of consecutive growth in public investment, after it expanded 38% (2021) and 20% (2022). In 2020, public investment fell 9%.
The government official stressed that the current administration has managed to mitigate the decline that used to be observed every year of change in sub-national government administrations.
“There was a drop in public investment in 2019, 2015, and 2011. To date, it is growing around 6%. This is something important,” Contreras noted.
However, he indicated that this change in government administrations will affect the level of execution by local governments. — NNN-ANDINA
