Recession-hit Peru aims to boost investment with stimulus package
Reuters
Published Nov 10, 2023 05:00
Updated Nov 10, 2023 08:04
By Marco Aquino
LIMA (Reuters) - Peru's government on Thursday announced a package of more than two dozen new measures aimed at boosting investments in the Andean nation, which has been hit by a recession.
Economy Minister Alex Contreras said the measures included moves to attract investments to the country's critical mining sector and boosting mining production.
The world's no. 2 copper producer slid into recession this year due to the El Nino weather phenomenon, lower private investment and lingering effects from earlier social conflicts.
Contreras was upbeat about the recovery plan, which he said would lead to a surge in funding for public and private projects of up to $8 billion in 2024, from $2.3 billion this year.
"We are betting on a major recovery" in the fourth quarter, Contreras told a press conference, adding he expects Peru's annualized inflation to fall to around 3.8% to 3.9% in November.
With the fresh stimulus, Peru's economy will still be able to hold the country's fiscal deficit to its goal of 2.4% of GDP this year, Contreras said.
"We're looking to create a jolt of confidence, for the private sector to understand that the government is committed to reactivating the economy," he said. "We don't want the country to fall into pessimism."
(This story has been corrected to specify that the forecast is for the fiscal deficit, not economic growth, in paragraph 6)
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Written By: Reuters
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